USD/PKR: Pakistani Rupee Strengthens Against the Greenback

Pakistani Rupee strengthens against the US dollar during the first trading hours of the new week. On the interbank market, Pakistani Rupee was seen going lower by -067% settling at 155.35 against the US dollar. The USD/PKR exchange rate settled higher at 156.40 during last week’s trading activity. Dung early Asia trading hours Pakistani Rupee was able to recover most of its trading losses.

The State Bank of Pakistan (SBP) reported that the Pakistani Rupee was traded at Rs 155.35 against Rs156.40 in the currency market. On the other hand, the dollar index was seen trading lower, at 98.76 during London trading hours.

The current economic conditions in Pakistan are deteriorating. The Pakistan government lead by the Prime Minister Imran Khan is asking help from the International Monetary Fund (IMF). The last IMF bailout tranche was approved this summer after the austerity budget measures were set in place. The IMF approved a $6 billion bailout package for Pakistan government.

The IMF bailout has added more pressure to the Pakistani foreign debt. This caused the domestic currency Pakistani Rupee to lose on its value. Other external factors such as the global trade war and inflationary pressures may determine Pakistani Rupee to remain under pressure.

The benchmark equity index Karachi Stock Exchange KSE-100 Index closed up 2.20% at 38411 during the first trading hours of the week. Year-to-day the Pakistan stock exchange market is up 3.63%. The Pakistan 10-year government bond yield was gaped higher and closed slightly lower at 11.588. It still closed on a positive note gaining 2.36%.

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 market sentiment remains positioned against the Pakistani Rupee as the current macro-economic landscape paints a dark picture for the emerging market currencies such as the Pakistani Rupee.

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