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Will the Fed Push the Dollar Even Higher?

The US dollar traded near multi-week highs against several major currencies on Wednesday ahead of the Federal Reserve’s interest rate decision. Rising US yields supported the greenback, pushing the New Zealand dollar to a two-month low of $0.5749 and the Japanese yen to a one-week low of 155.43 per dollar. The euro traded at $1.1535, near its one-month low, while sterling stood at $1.3470, close to a six-week trough.

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Global Markets

Pakistan Seeks New Funding Sources

Finance Minister Muhammad Aurangzeb told Nikkei Asia that Pakistan plans to diversify its funding sources by returning to China’s domestic bond market for further yuan-denominated borrowing. He said Pakistan’s recent panda bond would not be a “one-time issuance.” In mid-May, Pakistan issued its first panda bond, worth 1.75 billion yuan ($261 million), under a 7.2-billion-yuan programme. Aurangzeb also said Pakistan is exploring Japan’s capital markets, including the possibility of issuing yen-denominated samurai bonds. A samurai bond is a yen-denominated bond issued in Tokyo by a non-Japanese company, government or supranational organization and governed by Japanese financial regulations. The finance minister departed for Bangkok, Thailand, last week to lead Pakistan’s delegation to the World Bank Group–IMF Annual Meetings 2026, scheduled for October 12–18.

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Global Markets

Pakistan, Libya Discuss Energy Cooperation

Pakistan has encouraged domestic refineries to explore importing Libyan crude oil as part of efforts to diversify its energy supply, Petroleum Minister Ali Pervaiz Malik said. He also said a Turkish seismic vessel is expected to arrive next month to begin data acquisition in the Indus Basin. Malik shared the developments on the sidelines of the 17th International Energy Forum Ministerial Meeting in Riyadh, where he met Libya’s Minister of Oil and Gas, Khalifa Rajab Abdulsadek. The two ministers discussed ways to strengthen cooperation in the oil and gas sector.

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Global Markets

PSO Sales Rise 12% Despite Industry Decline

Pakistan’s petroleum product sales fell 2% year-on-year to 1.35 million tons in September 2026, driven by lower high-speed diesel and motor spirit volumes, according to industry reports. Pakistan State Oil’s sales rose 12% to 639,000 tons, while Attock Petroleum sold 116,000 tons. Hascol’s sales declined 14% to 37,000 tons. In the first quarter of FY27, PSO’s sales increased 18% to 1.91 million tons, APL’s rose 11% to 364,000 tons, and Wafi’s grew 6% to 348,000 tons. Hascol’s quarterly volumes fell 12% to 114,000 tons.

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