Bulls continued to dominate the market as the Pakistan Stock Exchange (PSX) reached yet another milestone of 118,000 on Monday.

The KSE-100 index surged more than 1,000 points to hit a new high of 118,735 points on the opening day of trading of the business week.

The KSE-100 index finished at 117,586 points on Friday.

The US dollar

However, during the early morning interbank trading, the dollar lost value. In the interbank market, the value of the Pakistani rupee dropped 11 paisas to Rs278.45 against the US dollar.

The dollar closed at Rs278.56 last week.

In the interbank market, the Pakistani Rupee increased by 0.03% against the US dollar during Monday’s early trading session.

The rupee strengthened by 8 paise against the dollar, reaching 278.48 as of 10:10 a.m. By ending at 278.56, the rupee had lost 9 paise the day before.

Globally, Monday saw a minor decline in the US dollar, but it was still close to its two-year high. In order to obtain additional understanding of the Federal Reserve’s interest rate strategy, traders are anticipating US economic data, namely the December non-farm payrolls report.

The Chinese yuan also garnered notice when, following a strong defense by the People’s Bank of China in December, it dropped below the psychological level of 7.3 per dollar for the first time in 14 months.

Last spotted, the offshore yuan increased by 0.15% to 7.3487 per US dollar, while the onshore yuan fell by 0.05% to 7.3252 per US dollar.

The speeches that various Federal Reserve policymakers are scheduled to give this week, in which they are anticipated to restate their positions on inflation and the continuous fight against price increases, are also attracting market attention.

Expectations of fewer interest rate reduction from the Fed have helped the US dollar gain strength, and last week it reached a two-year high. Meanwhile, the euro fell to its lowest level in more than two years.

The KSE-100 index soared to yet another record high during intraday trading on Thursday, demonstrating that bulls were still in control of the Pakistan Stock Exchange (PSX).

The benchmark 100 index increased by 1,359.73 points from its previous closing of 117,008.08 to hit an intraday high of 118,367.81 points.

Given the federal government’s ambitious ambition to overhaul the national economy, traders’ large buying binge coincides with predictions of economic stability in the nation.

The five-year national economic plan “Uraan Pakistan,” which aims to achieve sustainable development and economic stability, was inaugurated by Prime Minister Shehbaz Sharif on December 31.

Speaking to the audience, the prime minister emphasized that the program would offer a path forward for economic development, emphasizing work creation, infrastructure, energy, the digital economy, and the environment.

Meanwhile, investors’ confidence has also increased due to the falling rate of inflation. This is the lowest level of 4.1 percent in 81 months as a result of government actions.

The consumer price index was measured at 4.1 percent last month, down from 49 percent in June of last year, according to the Pakistan Bureau of Statistics. Comparing this to the 29.7 percent inflation rate in December 2023, there has been a notable decrease.

Compared to 2.3 percent in June 2024 and 27.3 percent in December 2023, the wholesale price index was just 1.9 percent last month.