Wall Street stocks rose following improved US inflation data, with the Producer Price Index (PPI) dropping 0.3 percent month-on-month in June, marking its first contraction since August 2025. This, combined with lower-than-expected consumer price index (CPI) readings, has reduced market expectations for aggressive Federal Reserve interest rate hikes.
The positive inflation news initially supported market sentiment, though analysts noted that energy prices have recently begun to climb again due to rising US-Iran tensions, which could temper future inflation outlooks. Despite this, the immediate reaction was positive, as investors anticipate a potentially less hawkish stance from the Fed.
For gold and currency rates in Pakistan, easing US inflation and reduced prospects of aggressive Fed rate hikes could weaken the US dollar, potentially making international gold more attractive and supporting PKR against the USD.
بحوالہ / Source: www.brecorder.com