USD/PKR: Pakistani Rupee Moves Lower After 3 Straight Sessions Of Gains

The Pakistani Rupee is moving lower versus the US dollar, snapping at here session winning streak.

The USD to PKR  exchange rate is 154.16 in early trade on Friday, after closing the previous session at 154.13. This has been more a story of dollar weakness as investors grow increasingly certain that the Federal Reserve will cut interest rates at its next meeting.

Pakistani Rupee Edges Lower After 2nd Covid-19 Case Confirmed

Emerging market currencies, including the Pakistan Rupee gained versus the US dollar on Thursday, as fears of a steep increase of coronavirus cases in the US hit the dollar again. Pakistan is by no means immune from the coronavirus outbreak. The IMF have warned that the outbreak could hit the Pakistan economy hard.

The Pakistani Rupee is trading lower on Friday after Pakistan confirms its first two coronavirus cases. Schools have been shut in several areas and flights suspended to and from Iran in a bid to stop the spread. However, the Karachi Stock Exchange was advancing cautiously, snapping a six-day losing streak.

Dollar Drops On Rate Cut Fears

The USD fell across the board in Thursday was continues to look weak on Friday. Investors sold out of US assets amid growing fears that the US would be the next region hit hard by the coronavirus outbreak. The US stock market the Dow Jones recorded its worst sell off in history, plunging 1100 points as investors scrambled out of US investments.

The US dollar also relinquished its safe haven status as investors upped their expectation of the Federal Reserve cutting interest rates at the March meeting. The market is now assuming a 71% probability of rate cut, according to the CME Fedwatch. This was up considerably from 41% just 24 hours earlier and 23% at the beginning of the week.

Today dollar investors will continue digesting coronavirus headlines. Additionally, investors will look ahead to several high impacting US data points including personal consumption expenditure, the Fed’s preferred measure of inflation and consumer confidence. Whilst PCE is expected to have increased 0.3% month on month, consumer confidence is expected to have ticked lower. However, given that the data is from prior to coronavirus really spreading fast, the data could only receive limited attention.

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