The US dollar has surged by Rs2.70 against the Pakistani rupee in the inter bank exchange market, reaching Rs156.58 here on Monday.
According to the details, when trade started today the rate of dollar rose Rs2.70 in the open market, reaching to Rs157 in the open market.
The rapid spread of the coronavirus infection around the world has had a negative impact on the world economy, creating hindrances for supply chains across the globe.
Gold prices in the local market have also seen a rise of Rs 500 per tola on Monday, Bol News reported.
According to the details, Chairman Jewelers Association Mohammad Arshad said in his statement that after the increase in the price of gold in Pakistan, gold per tola rose by Rs 500 to Rs 95 thousand 200 while ten grams of gold increased by Rs 600 to 81.
According to international news agency Reuters, Spot gold increased 0.7pc to $1,686.22 per ounce by 0325 GMT, having touched its highest since December 2012 at $1,702.56 earlier in the session. U.S. gold futures gained 0.9pc to $1,687.80 per ounce.
Jaffrey Halley, a senior analyst at OANDA, said, “It is a massive flight to safety as the Chinese trade data was really bad, much worse than expected, Italy quarantined a quarter of their population (due to the coronavirus) and stock markets are down,”
International news reported that China’s trade and economies has been influenced badly since the outbreak. Virus has disrupted economy, global supply chains and business operations.
Reuters also reported that Global equities tumbled, while U.S. stock futures plunged 5pc as investors sought refuge in safe havens to hedge the economic shock of the epidemic.
The yen jumped to its highest in more than 3 years against the dollar, while U.S. 10-year Treasury yields fell to a record low.
Phillip Futures analyst said in a note, “Gold is further supported by concerns that the slowdown of the global economy from the coronavirus would continue and central banks would keep rates low,”
Oil fell about 25pc on Monday, and gold is often seen as a hedge against oil-led inflation.