BAFL 45.26 Increased By ▲ 0.21 (0.47%)
BIPL 20.08 Decreased By ▼ -0.43 (-2.1%)
BOP 5.42 Decreased By ▼ -0.22 (-3.9%)
CNERGY 4.54 Decreased By ▼ -0.01 (-0.22%)
DFML 15.65 Decreased By ▼ -0.05 (-0.32%)
DGKC 73.20 Increased By ▲ 1.99 (2.79%)
FABL 27.33 Decreased By ▼ -0.07 (-0.26%)
FCCL 17.54 Increased By ▲ 0.39 (2.27%)
FFL 9.05 Increased By ▲ 0.50 (5.85%)
GGL 12.60 Decreased By ▼ -0.07 (-0.55%)
HBL 111.67 Decreased By ▼ -1.03 (-0.91%)
HUBC 122.28 Increased By ▲ 3.17 (2.66%)
HUMNL 7.24 Decreased By ▼ -0.36 (-4.74%)
KEL 3.26 Decreased By ▼ -0.01 (-0.31%)
LOTCHEM 27.70 Decreased By ▼ -0.15 (-0.54%)
MLCF 39.55 Increased By ▲ 0.47 (1.2%)
OGDC 108.80 Increased By ▲ 0.49 (0.45%)
PAEL 17.74 Decreased By ▼ -0.01 (-0.06%)
PIBTL 5.40 Decreased By ▼ -0.16 (-2.88%)
PIOC 107.40 Increased By ▲ 1.40 (1.32%)
PPL 91.77 Decreased By ▼ -0.73 (-0.79%)
PRL 24.95 Decreased By ▼ -0.39 (-1.54%)
SILK 1.06 Decreased By ▼ -0.01 (-0.93%)
SNGP 63.04 Decreased By ▼ -0.68 (-1.07%)
SSGC 11.89 Decreased By ▼ -0.11 (-0.92%)
TELE 8.15 Decreased By ▼ -0.31 (-3.66%)
TPLP 13.16 Decreased By ▼ -0.18 (-1.35%)
TRG 81.38 Decreased By ▼ -4.02 (-4.71%)
UNITY 25.85 Decreased By ▼ -0.11 (-0.42%)
WTL 1.51 Decreased By ▼ -0.03 (-1.95%)
BR100 6,181 Decreased By -4.8 (-0.08%)
BR30 21,539 Increased By 79.8 (0.37%)
KSE100 60,531 Increased By 29.3 (0.05%)
KSE30 20,188 Increased By 13 (0.06%)

LONDON: Riskier currencies such as the commodity-linked Australian dollar, Canadian dollar and the Norwegian crown fell to multi-week lows against the US dollar on Thursday, as souring risk sentiment in global markets boosted the greenback.

Falling stock markets in the United States on Wednesday, in Asia overnight, and in Europe on Thursday contributed to a shift in sentiment.

By 1138 GMT, the dollar edged 0.05% higher against a basket of currencies.

It gained against the Aussie, which lost as much as 0.8% to 75.92 US cents, its lowest level against the buck since Dec. 29.

The neighbouring New Zealand dollar, or Kiwi - fell half a percent to 71.22 US cents.

The Canadian dollar, or ‘loonie’, hit its lowest levels in a month, weakening to as much as 1.286 per US dollar.

Norway’s crown slumped to its lowest in five weeks at 8.7286 per dollar, falling as much as 0.8% in London trade.

Analysts note that some of the optimism around vaccines fuelling a recovery in the global economy has evaporated, given that several countries, especially some in Europe, have been slow to roll them out and have faced problems doing so.

The European Union, which is far behind the United States, China and Britain in deploying a vaccine, demanded AstraZeneca spell out how it would supply the bloc with reserved doses of COVID-19 vaccine from plants in Europe and Britain.

“The story of weakness in the European recovery continues,” said Lars Sparresø Merklin, senior analyst at Danske Bank.

“A shortfall in vaccines is now at centre stage and risk aversion to European assets from earlier in the week has spread to global assets. The USD has been the natural winner.”

There were also expectations of more dour economic news, with data expected to show the US economy likely contracted at its sharpest pace since World War Two in 2020 as COVID-19.

The Commerce Department’s snapshot of fourth-quarter gross domestic product on Thursday is also expected to show the recovery from the pandemic losing steam as the year wound down amid a resurgence in coronavirus infections and exhaustion of nearly $3 trillion in relief money from the government.

The Federal Reserve on Wednesday left its benchmark overnight interest rate near zero and pledged to continue injecting money into the economy through bond purchases, noting that “the pace of the recovery in economic activity and employment has moderated in recent months.”

Despite the rise in the dollar however, analysts still remain bearish on the currency.

“Market noise may persist a bit longer, but we remain positive on risk assets overall and bearish USD over time, with the Fed as an important driver,” strategists at CitiFX said in a note to clients.

Across the pond, the euro hovered around the $1.21 mark, last down 0.1% on the day after hitting its lowest in over a week against the dollar on Wednesday.

European Central Bank (ECB) policymakers have stepped up their mentions of the euro in recent weeks, with the most recent comments indicating that the ECB could even cut its deposit rate to check the strength of the continent’s shared currency.

“We don’t expect the recent verbal interventions to do much damage to the euro as (a) the market is already pricing c.70% probability of a 10basis point rate cut within a year, and (b) there is not much else the ECB can do beyond the already partially priced-in rate cut,” ING strategists said in a note.

Sterling fell 0.2% to $1.3664.


Comments are closed.

Risk currencies down in Europe

COP28 opens with ‘historic’ launch of loss and damage fund

Blinken says truce between Israel-Hamas is producing results

Long wait for freedom: Afghan refugees in limbo in Pakistan

Inter-bank: rupee registered 3rd successive gain against US dollar

Open market: rupee strengthens against US dollar

Pakistan’s central bank reserves increase $77mn, now stand at $7.26bn

PM Kakar calls for utilizing Loss & Damage Fund on merit

Oil prices fall amid skepticism on OPEC+ supply cuts

Pakistan cannot develop without development of Balochistan: Zardari

KSE-100 stays flat amid profit-taking