USD/PKR: Pakistani Rupee Steady near 155 Mark Ahead of Trade Deal Deadline

USD/PKR held steady near the 155 mark on Thursday in light of the latest developments concerning US-China trade talks.

USD/PKR was little changed at 154.300 in late Asian session on Friday.

The Chinese commerce ministry said yesterday that Beijing and Washington were in close communication on trade. However, it did not indicate whether there would be retaliatory steps if additional tariffs were imposed on Chinese goods on Sunday.

Market sentiment received a boost after US President Trump said in a tweet that the US was getting very close to a “big deal” with China. Trump was expected to meet with Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and White House advisers Larry Kudlow and Peter Navarro to discuss the move.

Meanwhile, the Wall Street Journal reported US negotiators had offered to suspend new tariffs on Chinese imports and to reduce existing tariffs on $360 billion of China-produced goods by 50% in return for guaranteed purchases of US agricultural products.

The exotic pair seemed to have ignored a set of US macro data. The number of Americans filing for unemployment assistance rose more than expected, by 49 000, to 252 000 during the week ended December 8th, while marking their highest level since September 2017. The rise probably does not reflect a pickup in layoffs, since the numbers usually fluctuate during the period after the Thanksgiving Day holiday.

At the same time, US producer prices increased at an annual 1.1% in November, while matching October’s rate. Core PPI also rose at a smaller-than-anticipated annual rate, 1.3% in November, marking the slowest gain since September 2016.

USD was pressured by Fed’s determination to maintain an accommodative financial environment, as Chair Jerome Powell noted on Wednesday rate hikes were less needed than during the mid-1990’s rate-cut cycle and only a significant, persistent rise in inflation would lead to a hike.

On the other hand, trade optimism seemed to have lent certain support. The US Dollar Index was up 0.16% to 96.89 in late Asian trade on Friday, after touching lows not seen since early July.

Today’s market focus will be on the monthly report on US retail sales at 13:30 GMT. Analysts on average expect a 0.4% monthly growth in sales in November, following an increase by 0.3% in October.

Additionally, core retail sales, which exclude large ticket prices and historical seasonality of automobile sales, are expected to increase 0.4% in November, following a 0.2% monthly gain in October. In case month-over-month growth exceeds market expectations, this would have a strong bullish effect on USD, as it would suggest potentially higher inflationary pressure and higher probability of a short-term interest rate hike (and vice versa).

A separate report by the US Census Bureau at 15:00 GMT may show business inventories in the country rose 0.1% in October from a month ago, according to expectations, following zero growth in September. Higher-than-expected increase in inventories would have a limited bearish effect on the USD, suggesting insufficient consumer demand. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.