Business
Dollar languishes as focus turns to CPI, Fed speakers
The dollar was down on Wednesday as traders anticipated further clues on timing of interest rate hikes to tackle stubborn inflation.
The dollar retreated from an 18-month high in the last session, as oil prices slipped and investors reviewed the AI-driven surge that has bolstered demand for U.S. assets. The euro clung to gains, with budget worries in France keeping regional bond yields high and markets on edge.
Attention now turns to the release of US consumer price index data and speeches by Federal Reserve governors that could provide clues on the interest rate outlook.The danger is that the core CPI surprises to the upside due to strong consumer demand and higher expenses, driving up market pricing of an October Fed hike and the USD’, Carol Kong, a currency strategist at Commonwealth Bank of Australia, said in a note.
The dollar index, which measures the greenback against a basket of currencies, was down 0.02% at 102.16 after down 0.35% on Tuesday. The euro was up 0.04% at $1.1203.
The dollar was last barely changed at 158.32 yen and sterling was last up 0.03 percent at $1.3256.
The dollar continued losses on Tuesday as New York Fed President John Williams said he still expects one more rate hike this year, but sees no need for any increases in 2027.
The US Labour Department is set to issue its CPI for September, which is predicted to have increased by 0.6% month-on-month after a 0.4% rise in August, while annual inflation is expected to rise to 3.6% from 3.4%. Also set to be released is the Fed’s Beige Book.
Traders priced in a 77% likelihood the Fed will keep rates steady at its October 27-28 meeting, compared with 51% a month earlier, according to CME Group’s FedWatch Tool, while pricing in around 75 basis points of tightening to late 2027.
Bets on a Fed rate hike later this month were dumped after two members urged for gathering more evidence before judging whether additional tightening is needed, while Fed Governor Christopher Waller said inflation expectations remained “well anchored.”
Richmond Fed President Thomas Barkin is slated to take part in a fireside chat in Virginia and Federal Reserve Vise Chair for Supervision Michelle Bowman is to take part in discussions in Bangkok.
The International Monetary Fund and World Bank are holding their annual meetings in Bangkok, with European Central Bank President Christine Lagarde likely to appear multiple times on Wednesday.
The Australian dollar advanced 0.06% to $0.6984 against the greenback and New Zealand’s kiwi rose 0.09% to $0.5614.
Business
SBP to remain closed on Iqbal Day
State Bank of Pakistan (SBP) will be closed on Iqbal Day, Monday 9th November 2026
November 9 is celebrated as Iqbal Day to commemorate the birth of Oriental poet Dr. Allama Muhammad Iqbal.
Born on November 9, 1877, Allama Iqbal helped convince millions of Muslims in the subcontinent to seek a separate homeland.
Business
Dollar dips with US midterm results in focus
The question of whether Democrats can wrest control of Congress from Donald Trump’s Republicans was likely still hours away from a definitive answer.
The euro gained 0.2% to $1.1212, while the yen strengthened to 158.30 per US dollar in early trading. The U.S. dollar index, which measures downside against a basket of six currencies, fell 0.2 percent to 101.7.
The benchmark US 10-year Treasury yield fell 4 basis points to 4.919%.
“Given that the Democrats are currently favoured, we expect them to control both the House and the Senate,” Commonwealth Bank of Australia currency strategist Carol Kong said.
“If that pans out, the US dollar could sell off further from here, because a Democratic sweep would limit government spending over Trump’s term.”
As of 7:30 p.m. ET (0030 GMT), US media outlets had projected winners in a handful of House races after polls closed in 10 states, with voting still under way across much of the country.
Kong said investors were also watching the risk of an escalation in the Middle East depending on the election outcome. “If the Republicans lose control of the House and the Senate, what will the president do? He has said before that he will resume the bombing campaign against Iran after the election, so we will be watching that closely,” she said. “If he steps up his attacks in the conflict, then we could see a sharp rise in oil prices, which would support the dollar.”
Oil prices were little changed at $103.85 per barrel. a barrel after falling about 1% on Tuesday to its lowest level in nearly four weeks. Markets are weighing on talks to end the wars in Iran and Ukraine amid concerns that attacks in the last two conflicts could further disrupt supplies. Sterling rose to $1.3440 as traders focused on Thursday’s Bank of England policy statement. The Central Bank’s Monetary Policy Committee is expected to raise interest rates for the first time in August 2023. China’s offshore yuan last traded at 6.6673 per dollar, stabilizing after Tuesday’s biggest one-day decline since May 15, when the People’s Bank of China increased the amount of foreign exchange reserves financial institutions must hold to slow the yuan’s rise.
Business
PSX gains 1,222 points at opening, KSE-100 index crosses 169,000 mark
The Pakistan Stock Exchange (PSX) opened in the green on Wednesday as the market continued to maintain positive momentum.
At the beginning of the third day of the trading week, stock markets saw a rise, with the benchmark index KSE-100 increasing by 1,222 points to 169,240 points. It should be mentioned that the stock market maintained an upward trend in Tuesday’s trading session as well. At the close of trading, the KSE-100 index had increased by 1,454 points, reaching 168,018 points.
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