The Pakistan Stock Exchange (PSX) kicked off the new business week with notable gains on Monday, reaching fresh highs ahead of the State Bank of Pakistan’s (SBP) upcoming monetary policy announcement.
In early trading, the KSE-100 index surged by 997 points to an all-time high of 170,862, up from the previous close of 169,864.52 points.
Meanwhile, the downward trend in the US dollar continued, as it fell by 2 paisas in the interbank market to reach Rs280.30. According to the Exchange Companies Association, this decline represents another step in the ongoing reduction of the dollar’s value.
The decline comes amid various economic factors, and the dollar has been consistently losing value in recent days.
On the other hand, the central bank is widely expected to maintain its key policy rate at 11% in its upcoming Monetary Policy Committee (MPC) meeting scheduled for Monday, as inflation risks linked to food prices and external pressures continue to weigh on the outlook.
A majority of analysts and surveys conducted by leading brokerage houses anticipate no change in the policy rate. Headline inflation has shown an upward trend in recent months, increasing from 4.1% in July to 6.1% in November, largely driven by disruptions in food supply following recent floods.
Source: Dunya News
