Stocks retreat on gloomy rupee outlook

The Pakistan Stock Exchange observed yet another range-bound session on Wednesday owing to the continuous depreciation of the local currency against the dollar. The benchmark index opened in the positive zone but failed to continue its momentum as investors’ participation remained sluggish, according to Arif Habib Ltd. The rupee depreciated 0.9 per cent day-on-day to close at 223.42 against the greenback in the interbank market. Reuters reported the dollar rose to a 24-year high against the yen and a 37-year high versus the sterling as Japan’s dovish monetary policy and Europe’s economic problems contrasted with a relatively stronger US economy and a hawkish Federal Reserve determined to bring down inflation to its 2pc inflation target. As a result, the KSE-100 index settled at 41,766.05 points, down 94.31 points or 0.23pc from a day ago.