Global stocks rose on Friday after a top Federal Reserve official cemented expectations of a US interest rate cut later this month, fuelling appetite for riskier assets and keeping a cap on the dollar.
Pakistan’s rupee dropped to an all-time low of 146.5 to the dollar on Thursday, days after Islamabad announced it had reached an agreement with the International Monetary Fund on a fresh bailout for its troubled economy.
China’s central bank (CB) will use foreign exchange intervention and monetary policy tools to stop the yuan weakening past the key 7-per-dollar level in the near-term, three people familiar with the central bank’s thinking said. “At present, rest assured they will certainly not let it break 7,” a source told Reuters.
Europe's share markets struggled on Thursday and the dollar and bond yields trimmed overnight gains made after the US Federal Reserve dampened bets that it might be readying its first interest rate cut in years. Oil and metals markets added to the pressure on stocks as traders knocked copper to a 2-1/2 month low
The Pakistani rupee hit a new all-time low of Rs149.35 to the US dollar in the inter-bank market on Friday. This is the second successive day when rupee continued to lose ground against the greenback under the fresh round of depreciation. On Thursday, the local currency lost 3.62% to close at Rs146.52 to the US dollar in inter-bank.
Turkish state banks sold more than $1 billion, sources said, helping the lira to firm more than 2 per cent at one stage and stem declines triggered by a decision this week to re-run Istanbul’s mayoral election. The lira traded at 6.0975 at 1315 GMT, up from Thursday’s close of 6.1935. The currency rose to 6.0515 against the US dollar in overnight Asia trade.
China’s yuan tumbled to the weaker side of the key 7-per-dollar threshold on Monday, hitting its weakest since 2008, against the backdrop of a sharp escalation in the protracted US-Sino trade war.
The dollar pushed higher on Thursday following a modest US Federal Reserve rate cut, its first in a decade, which left investors doubting that there is much more easing in the pipeline.