Pakistani Rupee has followed the lead of emerging market currencies and took advantage of the easing trade tensions. On the foreign exchange market, during last week’s trading activity, Pakistani Rupee closed on a positive note against the US dollar settling at 154.73. Year-to-date Rupee has gained +10.88% following a notable rise in the supply of the dollar since the beginning of the year
During early Asia trading hours, the USD/PKR exchange rate was seen stabilizing at 155.00, but not before reaching a low of 154.43. The State Bank of Pakistan (SBP) reported that during the previous week’s trading session the Pakistani Rupee was traded at Rs 155.05 against Rs 154.43 in the currency market.
Most Asian currencies posted gains as easing trade tensions between the world’s two most powerful economies motivated investor’s risk appetite. China and the US have reached a consensus on “phase one” trade deal, including rolling back some existing import tariffs. In the week ahead, the market focus will be on the details of the partial agreement.
Elsewhere, last week, the Asian Development Bank (ADB) updated its 2019 outlook, but kept its growth projection unchanged at 2.8%, which is the lowest pace of growth among Asian countries and below the SBP’s growth rate forecast of 3.5%. At the same time, the Asian Development Outlook 2019 Update revealed the inflation rate would be steady at 12% in FY 2019.
A survey conducted by the American Business Council of Pakistan (ABC) showed more than 59% of the US investors surveyed are optimistic about the future business conditions in Pakistan.
The benchmark equity index Karachi Stock Exchange KSE-100 Index closed up 0.99% at 40,916 on Friday, and was seen trading on Monday morning Pakistan trading hours at 41,461 up 1.33%. Year-to-day the Pakistan stock exchange market posted double-digit returns of 11.86%. The Pakistan 10-year government bond yield gaped higher and closed at 11.239 versus 11.251 previous closing rates.
On the other hand, the dollar index was seen tumbling to a 5-month low amid easing Brexit fears and settled at 97.22 on Friday.