JH Investments | Realtime Financial News and Analysis

The Pakistani rupee (PKR) is expected to continue its downward spiral and reach an all-time low of 350 per dollar by the end of next year. A report cited by global financial news provider Bloomberg said the PKR is the worst performing currency in Asia this year and will continue to depreciate over the next three years. According to the report, the weakness of PKR is due to Pakistan's high inflation, trade deficit, debt repayment, foreign financing deficit and declining foreign investment. The report also warns that there could be a shortage of dollars in Pakistan, which could lead to parallel currency markets where the dollar is traded at a higher rate than the official rate. This would damage the credibility of the central bank and the government as they tried to curb illegal currency trading and stabilize the rupee. The report adds that Pakistan's economic problems could continue until 2024 as the country relies on short-term loans and aid from the International Monetary Fun

Asian markets struggled on Thursday after another lackluster performance on Wall Street, focusing on the release of key US inflation data, as traders bet the Federal Reserve will cut interest rates next year, APP reported. Observers say signs that global and major economies are feeling a lingering strain from monetary policy have given banks room to take a more dovish stance in the fight against inflation, which is set to fall sharply in 2022 from a four-decade high. That, along with several Fed policymakers signaling their support for keeping interest rates where they are, gave traders some much-needed reassurance at the end of a difficult year. And the latest reports added to the optimism. The Fed's beige book summary of the economy showed that activity has slowed in recent weeks and the labor market has continued to cool. Policymakers have said some jobs are needed to restore inflation to 2 percent. Gross domestic product grew faster than expected in the third quarter, and consu