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Pakistani Rupee can face difficulties amid anti-government protest, that seek to oust the current Prime Minister Imran Khan.
On the interbank market, Pakistani Rupee settles at 156.40 for 7 consecutive days. During early Asia trading hours, the USD/PKR exchange rate was seen quoted lower at 155.27.
The State Bank of Pakistan (SBP) reported that the Pakistani Rupee was traded at Rs 155.35 against Rs 156.40 in the currency market.
The opposition parties, including the Pakistan People Party (PPP) and the Pakistan Muslim League-Nawaz (PML-N) have organized a sit in strike in Bannu city in southern Khyber Pakhtunkhwa and other parts of the country. This might have been the biggest protest since Prime Minister Imran Khan was sworn into office last year.
In other news, the Fed intentions to pause its easing efforts in the short-term can provide a relief rally to emerging market currencies. But, there are other external headwinds that can hinder any positive developments in emerging markets.
The trade war tensions remain the biggest threat to global economic growth. There is a lot of uncertainty over whether or not the world’s most powerful economies in the world can reach a consensus and put an end to the trade dispute.
The benchmark equity index Karachi Stock Exchange KSE-100 Index closed down 1.17% at 37593 on Wednesday. Year-to-day the Pakistan stock exchange market is up 1.42%. The Pakistan 10-year government bond yield gaped higher and closed at 11.562 versus 11.297 previous closing rates.
On the other hand, the dollar index, which gauges the greenback’s strength against a basket of major currencies, was seen trading slightly lower at 97.86 during London trading hours.
USD/PKR Technical Pattern
On the technical front, the USD/PKR exchange rate is trying to challenge again the unofficial peg established at the 155.00 support level. The worsening market sentiment may keep the Pakistani Rupee exchange rate under pressure.
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