AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 129.06 Decreased By ▼ -0.47 (-0.36%)
BOP 6.75 Increased By ▲ 0.07 (1.05%)
CNERGY 4.49 Decreased By ▼ -0.14 (-3.02%)
DCL 8.55 Decreased By ▼ -0.39 (-4.36%)
DFML 40.82 Decreased By ▼ -0.87 (-2.09%)
DGKC 80.96 Decreased By ▼ -2.81 (-3.35%)
FCCL 32.77 No Change ▼ 0.00 (0%)
FFBL 74.43 Decreased By ▼ -1.04 (-1.38%)
FFL 11.74 Increased By ▲ 0.27 (2.35%)
HUBC 109.58 Decreased By ▼ -0.97 (-0.88%)
HUMNL 13.75 Decreased By ▼ -0.81 (-5.56%)
KEL 5.31 Decreased By ▼ -0.08 (-1.48%)
KOSM 7.72 Decreased By ▼ -0.68 (-8.1%)
MLCF 38.60 Decreased By ▼ -1.19 (-2.99%)
NBP 63.51 Increased By ▲ 3.22 (5.34%)
OGDC 194.69 Decreased By ▼ -4.97 (-2.49%)
PAEL 25.71 Decreased By ▼ -0.94 (-3.53%)
PIBTL 7.39 Decreased By ▼ -0.27 (-3.52%)
PPL 155.45 Decreased By ▼ -2.47 (-1.56%)
PRL 25.79 Decreased By ▼ -0.94 (-3.52%)
PTC 17.50 Decreased By ▼ -0.96 (-5.2%)
SEARL 78.65 Decreased By ▼ -3.79 (-4.6%)
TELE 7.86 Decreased By ▼ -0.45 (-5.42%)
TOMCL 33.73 Decreased By ▼ -0.78 (-2.26%)
TPLP 8.40 Decreased By ▼ -0.66 (-7.28%)
TREET 16.27 Decreased By ▼ -1.20 (-6.87%)
TRG 58.22 Decreased By ▼ -3.10 (-5.06%)
UNITY 27.49 Increased By ▲ 0.06 (0.22%)
WTL 1.39 Increased By ▲ 0.01 (0.72%)
BR100 10,445 Increased By 38.5 (0.37%)
BR30 31,189 Decreased By -523.9 (-1.65%)
KSE100 97,798 Increased By 469.8 (0.48%)
KSE30 30,481 Increased By 288.3 (0.95%)

The dollar climbed to a near 14-year high against a basket of currencies on Wednesday, even as analysts cautioned the greenback is vulnerable to a letdown from its surge tied to bets on pro-growth policies under US President-elect Donald Trump.
The euro deteriorated to its weakest level in almost a year against the greenback. Trump's stunning victory on November 8 has raised concerns about a rising tide of potentially destabilising wins for populist candidates and issues on ballots across Europe in the coming year.
"The market has gone a bit too far ahead of itself. It looks vulnerable for a short-term pullback," said Mazen Issa, senior currency strategist at TD Securities in New York. Weaker-than-forecast data on US producer prices and industrial production on Wednesday pinned Treasury yields near their 10-month peaks and put a cap on the dollar. Two-year Treasury yield was little changed at 1.005 percent, while 10-year yield was down 1.5 basis points at 2.223 percent.
The dollar index reached 100.57, which was its highest since April 2003 before retreating to 100.42, up 0.2 percent on the day. It has risen 3.5 percent over eight days, which would be the biggest such increase since May 2015.
While traders have increased their expectations on the Federal Reserve raising interest rates at its December 13-14 policy meeting, the dollar rally may cause Fed policy-makers to reconsider such a move because of its repercussions on US exports, analysts said. "It's reaching its limit. It could feed back negatively on US growth," Joachim Fels, global economic adviser at Pimco, said at the Reuters Global Investment Outlook Summit in New York.
On Thursday, Fed Chair Janet Yellen will testify before the Congress' Joint Economic Committee at 10 am EST (1500 GMT) where she might raise concerns about the dollar's surge. "Anything (Yellen says) that expresses caution won't be taken lightly by markets," TD's Issa said.
US interest rates futures implied traders saw about a 91 percent chance the Fed would raise the target range on policy rates to 0.50-0.75 percent next month, CME Group's FedWatch showed. Pressured by traders' conviction on a US rate hike and political worries about Europe, the euro fell below $1.07 for the first time since the start of December 2015. It was down 0.4 percent at $1.0679. The dollar ended little changed at 109.15 yen after rising to 109.75 yen, its highest since June 1.

Copyright Reuters, 2016

Comments

Comments are closed.