Pakistani stocks close near a 29-month high; rupee firms

Pakistan's central bank on Monday announced an increase in its key policy rate to 14 per cent from 13.5 percent. — File Photo

KARACHI: Pakistani stocks, led by the energy sector, ended near a 29-month high on Tuesday despite an increase in the key policy rate the previous day, which dealers said had been factored in by the market.

Pakistan’s central bank on Monday announced an increase in its key policy rate to 14 per cent from 13.5 percent to combat persistent inflation due to government borrowing from the State Bank of Pakistan.

China, US closer to G20 deal on trade imbalances: report

South Korean special police officers guard near the symbol of G20 at Gimpo Airport in Seoul, South Korea, Monday, Oct. 25, 2010. – AP Photo

BEIJING: China and the United States have reached the basis for an agreement at next month’s Group of 20 summit on setting targets to rein in global trade imbalances, a report said Wednesday.

The Financial Times quoted Li Daokui, an adviser to China’s central bank, saying G20 finance chiefs had made “good progress” towards a deal at their meeting in South Korea at the weekend.

“I was very encouraged by the G20 meeting,” Li told the newspaper in an interview. “It is now possible for the two governments (the US and China) and other governments to have a good understanding.”In a statement the G20 finance ministers agreed to “refrain from competitive devaluation of currencies” and aim for “more market-determined exchange rate systems”.