US dollar continues to slide against Pakistani rupee
Market correction continues to cause Stock market instability. Pakistan Stock Exchange had a changeable outgoing week, with profit taking and correction marking the better part of trading activity through the five days.
On Tuesday, after the long weekend, the index opened with a bearish sentiment, once again, and plunged down by over 1,200 points by within two hours of trading. Wednesday, opened with the same fluctuating sentiment, but managed to recover some of the day’s losses by noon.
The index opened at 59,170.97 points, but soon after opening the market fell by more than 400 points to hover at 58,758.48 by 9:30 A.M. However, the benchmark KSE-100 index began recovering and by noon, the market had gained 750 points on opening stage to trade around 59,921.62 points.
Energy and banking sector companies were leading the recovery of the market, which came despite the political uncertainty as well as market correction due to profit-taking.
Analysts anticipate the decline witnessed in the market in the past few weeks. However, they also expect the market correction to finish its course within the current week, allowing the KSE-100 index to open on a positive note in calendar year 2024.
More From FactFile: PSX faces sharp decline below 60,000 amidst elections-related uncertainty
While, The US Dollar continued its downward trend against the Pakistani Rupee and reached Rs282 by losing 37 paisas in the interbank trading on Wednesday.
The Pakistani rupee gained strength against the dollar on Tuesday in the interbank foreign exchange market after a three-day holiday.
In the open market, the price of the dollar reached Rs283.75 after a decrease of 25 paisas.
In a related development, the cumulative borrowing by the federal and provincial governments for budgetary support from the domestic banking system rose by 200% during this fiscal year (FY24) so far.
Internationally, the US dollar remained under pressure on Wednesday, while the euro flirted with a four-month peak, as expectations that the Federal Reserve would soon cut interest rates took hold in the market, with thin year-end flows keeping movements limited.
With traders out for holidays globally until the New Year, the curtailed week is likely to see muted volumes.
