Dollar drops in interbank and open market, Gold price surges

Dollar dipped in the global market while gold registered a sharp rise and reached year high of 1,326 dollars per ounce.

The U.S. dollar index, which measures of the value of the U.S. dollar relative to the value of a basket of currencies, was at a 2 year low of 91.78, down 0.40% from previous close, with the Euro, British pound and Swiss Franc all at the strongest they have been in over 2 years.

Weakness in dollar in the global markets and rising trend in gold prices translated into the local market where greenbacks dipped against rupee while yellow metal recorded jump.

Dollar during the bank transaction during the first session closed with a loss of around 6 paisa to 105.34 rupees, while in the second which has been commonly called tomorrow’s market session recorded a further dip of 19 paisa and was trading at 105.15 to a rupee.

Moreover, in the open market recorded a decline of 40 paisa to Rs 106.20. When compared with last week, the dollar has dropped by almost 80 paisa from Rs 107 level.

Similarly the gold price registered a sharp increase in the local market by Rs 450 to Rs 51600 per tola. In the last two sessions it registered an increase of Rs 600 per tola.

 “Main reason for the gold price increase was Korean missile test, while several are selling dollar as they felt risk following US economy numbers and statements from the President Donald Trump”, said an analyst.