ANL 20.85 Decreased By ▼ -1.48 (-6.63%)
ASC 13.70 Decreased By ▼ -0.90 (-6.16%)
ASL 22.36 Decreased By ▼ -1.29 (-5.45%)
BOP 8.17 Decreased By ▼ -0.11 (-1.33%)
BYCO 7.79 Decreased By ▼ -0.36 (-4.42%)
FCCL 17.80 Decreased By ▼ -0.17 (-0.95%)
FFBL 22.55 Decreased By ▼ -0.93 (-3.96%)
FFL 15.60 Decreased By ▼ -0.50 (-3.11%)
FNEL 7.48 Decreased By ▼ -0.49 (-6.15%)
GGGL 17.83 Decreased By ▼ -1.57 (-8.09%)
GGL 38.80 Decreased By ▼ -2.94 (-7.04%)
HUMNL 6.03 Decreased By ▼ -0.31 (-4.89%)
JSCL 18.15 Decreased By ▼ -1.22 (-6.3%)
KAPCO 36.75 Decreased By ▼ -0.43 (-1.16%)
KEL 3.35 Decreased By ▼ -0.13 (-3.74%)
MDTL 2.55 Decreased By ▼ -0.15 (-5.56%)
MLCF 34.50 Decreased By ▼ -0.49 (-1.4%)
NETSOL 129.40 Decreased By ▼ -9.90 (-7.11%)
PACE 4.80 Decreased By ▼ -0.32 (-6.25%)
PAEL 26.75 Decreased By ▼ -1.60 (-5.64%)
PIBTL 8.91 Increased By ▲ 0.01 (0.11%)
POWER 7.41 Increased By ▲ 0.11 (1.51%)
PRL 17.21 Decreased By ▼ -1.09 (-5.96%)
PTC 9.87 Decreased By ▼ -0.13 (-1.3%)
SILK 1.53 Increased By ▲ 0.02 (1.32%)
SNGP 44.49 Decreased By ▼ -0.81 (-1.79%)
TELE 18.89 Decreased By ▼ -1.52 (-7.45%)
TRG 163.50 Decreased By ▼ -6.00 (-3.54%)
UNITY 32.76 Decreased By ▼ -0.29 (-0.88%)
WTL 2.97 Increased By ▲ 0.01 (0.34%)
BR100 4,727 Decreased By ▼ -94.47 (-1.96%)
BR30 22,769 Decreased By ▼ -707.41 (-3.01%)
KSE100 45,196 Decreased By ▼ -400.76 (-0.88%)
KSE30 17,811 Decreased By ▼ -218.34 (-1.21%)

Coronavirus
VERY HIGH Source: covid.gov.pk
Pakistan Deaths
27,432
5824hr
Pakistan Cases
1,232,595
2,35724hr
4.9% positivity
Sindh
453,051
Punjab
425,703
Balochistan
32,812
Islamabad
104,619
KPK
172,210

AMSTERDAM/LONDON: The dollar was steady on Wednesday, with currency markets generally quiet ahead of a US Federal Reserve meeting, where investors will be looking for any sign of response to the jump in US inflation.

The Fed concludes its policy meeting later in the day and will release new economic projections along with a policy statement at 1400 EDT (1800 GMT).

The central bank is widely expected to acknowledge the first conversations among its policymakers about when and how fast to pare back the massive bond-buying programme launched in 2020, but most investors think the Fed will refrain from any hints of starting tapering its stimulus in the near future.

At 1036 GMT, the dollar was flat on the day against a basket of currencies, at 90.529. On Tuesday, it hit a one-month high of 90.677, despite mixed US economic data.

The euro was little changed against the dollar, at $1.21185.

US retail sales dropped more than expected in May but sales in April were revised sharply up and are well above their pre-pandemic level.

Separate data showed that wholesale price inflation accelerated to 6.6%. Consumer price data last week showed the sharpest rise in more than a dozen years.

Market participants will be listening to the news conference after the Federal Open Market Committee (FOMC) meeting for any change in tone from Fed Chair Jerome Powell about whether the inflation is likely to be temporary or longer-lasting.

“If Powell sounds hawkish after all, the USD reaction is going to be more pronounced,” said Ulrich Leuchtmann, head of FX and commodity research at Commerzbank.

“Because the market is preparing more for large potential moves it then makes sense that EUR-USD will trade closer to 1.21 than to 1.22 until the FOMC meeting.”

Ned Rumpeltin, head of European currency strategy at TD Securities, said Powell would need to choose his words carefully to avoid surprising the market about possible tapering of monetary stimulus.

Risk-related currencies were slightly higher, with the New Zealand dollar up 0.3% at $0.7144 and the Australian dollar - which is seen as a proxy for risk appetite - up 0.2% at $0.7703.

The pound was up 0.2% at $1.4112 after British inflation unexpectedly jumped above the Bank of England’s 2% target in May.

In the oil market, Brent crude hit the highest since April 2019 due to a mix of post-pandemic demand and restricted production.

Japan’s exports rose at the fastest pace since 1980 in May and a key gauge of capital spending grew, helping the world’s third largest economy offset sluggish domestic demand as Covid-19 vaccinations boost business activity in key markets.

The dollar was a touch lower versus the yen, with the pair changing hands at 109.955.

The Chinese yuan was little changed versus the dollar, hovering around the key 6.40 level, after China’s industrial output and retail sales data both were below their forecasts.

Elsewhere, bitcoin was around $39,700. The cryptocurrency climbed above $40,000 earlier in the week following tweets from Tesla boss Elon Musk, who said that Tesla may resume transactions using it.

Comments

Comments are closed.