The currency exchange market experienced mixed movements on Tuesday. The US dollar (USD) was bought at Rs 279.00 and sold at Rs 280.50, while the British pound (GBP) was traded at Rs 369.00 for buying and Rs 372.65 for selling. The euro ranged between Rs 306.75 and Rs 309.80.

Among Gulf currencies, the Saudi riyal (SAR) was bought at Rs 73.60 and sold at Rs 74.33, while the UAE dirham (AED) ranged from Rs 75.35 to Rs 76.10. The Australian dollar (AUD) traded between Rs 188.00 and Rs 191.00, and the Canadian dollar (CAD) was bought at Rs 203.50 and sold at Rs 208.50.

Premium currencies, such as the Omani rial (OMR), Bahraini dinar (BHD), and Kuwaiti dinar (KWD), maintained their higher values. The OMR traded between Rs 717.50 and Rs 725.00, the BHD between Rs 731.65 and Rs 739.00, and the KWD saw the highest value, trading between Rs 898.20 and Rs 907.20. The Swiss franc held strong with buying at Rs 324.50 and selling at Rs 327.75.

Several factors influence Pakistan’s fluctuating exchange rates, including exports, imports, foreign reserves, industrial production, the wholesale price index, and money supply. These factors are key drivers of currency performance.

Recently, Pakistani traders have increasingly turned to futures markets to exchange US dollars for rupees, expecting the rupee to appreciate. This comes ahead of the IMF’s Executive Board meeting on September 25, expected to approve a $7 billion loan for Pakistan. Hassan Haider Naqvi, a senior analyst at Icon Management, noted that exporters are selling their dollar holdings due to shrinking premiums, which could strengthen the rupee to Rs 270-275/$ in the coming months.

However, Naqvi warned that the rupee’s sustainability is uncertain and depends on global oil prices and IMF developments. He projected the rupee might settle between Rs 270-280/$ by December 2024.

Adnan Agar, Director of Interactive Commodities, commented on gold prices, which have surged due to a 50-basis-point interest rate cut by the US Federal Reserve and rising geopolitical tensions in the Middle East. Agar predicted short-term corrections in gold prices but suggested they could rise above $2,700/ounce during this boom cycle, depending on future US job data and the 2024 presidential election.