The U.S. dollar in the interbank market touched its highest level in nearly 19 months, while the Pakistan Stock Exchange (PSX) recorded gains for the third consecutive session, with the benchmark index crossing the 130,000-point mark.
The dollar on the first trading of new fiscal year closed at PKR 283.94—its highest since December 11, 2023, when it stood at PKR 283.89.
The rupee weakened sharply due to rising demand from importers and external debt obligations, including interest and principal payments. No fresh inflows were reported.
Despite currency pressures, the PSX continued its upward momentum. On Wednesday, the benchmark KSE-100 Index surged by 2,144 points to close at 130,344.
The rally in the Pakistan Stock Exchange extended Wednesday, with the benchmark KSE-100 Index hitting a historic intraday high of 130,539 points before closing at a record 130,344, up 1.67%, according to an analyst from Al Habib Capital Ltd.
Investor sentiment was lifted by improving macroeconomic indicators, including a more than 9% narrowing of the trade deficit in June, a drop in year-over-year inflation to 3.2%, and the Federal Board of Revenue’s goal of achieving an 18% tax-to-GDP ratio by fiscal year 2028.
Additional optimism came from external developments, as a Pakistani delegation arrived in Washington to finalize a trade agreement—a move seen as an effort to recalibrate economic ties with the United States and ease tensions from previous tariff impositions, the analyst said.
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