US Dollar Stabilizes Amid Tariff Concerns and Inflation Data; Pakistan Stock Exchange Declines Slightly

The US Dollar (USD) is showing signs of stabilization, according to Scotiabank on March 12, despite the implementation of US steel and aluminum tariffs and retaliatory measures from the EU. Improved stock market sentiment, with the S&P 500 reaching 'correction' territory, may be contributing to this stability. The inverse relationship between the USD and equities, where heightened equity volatility typically drives 'haven' demand for the dollar, is also a factor. February's consumer price index (CPI) rose 2.8% year-over-year, while core CPI gained 3.1% year-over-year, both lower than expected. Meanwhile, the Pakistan Stock Exchange (PSX) 100-Index experienced a slight decline of 0.08%, closing at 114,084.54 points on Wednesday. Trading volume was 299.63 million shares, with a total market value of Rs. 20.262 billion. Out of 432 participating companies, 159 recorded gains, 213 suffered losses, and 60 remained unchanged.