KARACHI: The Pakistani rupee weakened to a record low of 69.82/88 to the dollar in early trade on Thursday.
A fall in foreign exchange reserves to just more than $11.2billion from a record high of more than $16 billion in October leaves little room for currency intervention to support the rupee, dealers said.
KARACHI: Equities continued to slide on the fifth consecutive session on Thursday with the benchmark KSE-100 Index slipping 91 points to finish at 12,035.
Investors mostly remained inactive due to looming political and economic uncertainities, dealers said.
The trade volumes shrank to 11 million shares, compared to 13 millions on Wednesday.
Out of 202 active scrips, 31 advanced while 161 closed negative.
The KSE Board and Securities and Exchange Commission of Pakistan (SECP) introduced some market stability last week but analysts say these measures only provided a temporary relief and were unable to restore investor confidence.
KSE-30 Index declined by 123 points to 13,973.
HONG KONG - Asian stocks fell on Thursday, with Japanese stocks posting their longest losing streak in a half century, on heightened fears that record high oil and stagflation will continue to damage company earnings and consumer spending.
Major European equity markets were expected to open between 0.6 percent to 1 percent lower ahead of a policy decision from the European Central Bank and the June US employment report.
Japan's Nikkei share index continued its slow bleed for the 11th consecutive day, the longest series of declines since 1954, after the Dow Jones industrial average sank into bear market territory overnight, closing more than 20 percent below its October peak.
The dollar was within striking distance of a two-month low against the euro after a report on Wednesday showed US private employers cut the most jobs in nearly six years.
Investors will focus on whether ECB policymakers, widely expected to deliver the first interest rate rise in a year, will hint that borrowing costs will have to rise further to fight inflation despite a global economy that is growing below its long-term trend.
Weakness was by no means unique to Japanese stocks in the midst of a toxic mix of rising inflation and slowing growth known as stagflation that is gripping the region.
TOKYO - The Nikkei share average dipped 0.2 percent on Thursday to set its longest losing streak in more than half a century as worries about high oil prices and the global economy hit exporters such as Toyota Motor Corp
Commodity-linked stocks such as trading house Mitsubishi Corp fell after their recent bullish runs, even though oil hit a fresh record on Thursday, with US crude rising as high as $144.44 a barrel.
The Nikkei fell for an 11th day, giving up 8.2 percent during that period, its longest falling streak since a 15-day losing run in 1954.
Still market participants appeared rather calm on this historical milestone.
‘Things are getting increasingly gloomy because of the impact from high oil prices as indicated by US car sales data, but not every investor is pessimistic even after a 10-day losing streak,’ said Soichiro Monji, chief strategist at the equity management department of Daiwa SB Investments.
He said money appeared to be shifting from commodity-related shares to domestic demand ones on the view that commodity prices have risen to a near peak, adding that oil prices may break below $100 a barrel by the end of this year.
‘This trend may continue in the coming three to six months,’ he said.
LONDON - Oil steadied near $141 a barrel on Wednesday, within sight of a record high, boosted by forecasts global supply will lag demand and further weakness in the dollar.
Tension between Iran, a major oil exporter, and Israel also lifted prices, and analysts said that could remain supportive for the rest of the week ahead of the U.S. Independence Day holiday in the United States.
'There could be short-covering as Iranian-Israeli tension means few will want to go short into the long weekend,' said Mike Wittner, analyst at Societe Generale.
U.S. crude rose 6 cents to $141.03 a barrel by 1334 GMT, while London Brent gained 54 cents to $141.21. U.S. crude hit a record high of $143.67 on Monday.
Adding to concern about supply, the International Energy Agency on Tuesday cut its global oil supply forecast for the next five years, signalling little relief from high oil prices.
The weak dollar also supported crude. The euro extended earlier gains against the dollar to hit a two-month high on Wednesday as traders anticipated the European Central Bank would raise interest rates on Thursday.
Investors have been using oil and other commodities as a hedge against the weaker dollar and inflation, helping fuel the market's rally of almost 50 percent since the start of the year.
