USD/PKR: Dollar Lifts Post Rate Cut & Biden’s Super Tuesday

The dollar is rebounding versus the Pakistani rupee in early trade on Wednesday as it attempts to claw back losses from the previous session. The US dollar (USD) Pakistani Rupee (PKR) exchange rate dropped sharply in the previous session after the Federal Reserve made an emergency interest rate cut.

At 10:00 UTC, USD/PKR is trading at 154.25, up 6 paisa from the open and towards the upper end of the trading range 154.17 – 154.30.

Pakistan Trade Deficit Shrinks Mainly On Reduced Imports

The Pakistani Rupee advanced in the previous session after data showed that the Pakistan trade deficit contracted 27% to $15.7 billion in the first eight months of the current fiscal year. The decline in the deficit is principally due to a significant reduction in imports and comes amid hopes of a revival in exports, after three months of decline.

Data revealed that exports in February increased a solid 13.6%, the highest level in 9 months. Perhaps even more impressive given the global coronavirus situation. However, total exports increased just 2.6% from July to February. Imports were also down during the same 8 month period by 14.4%.

US Data In View After Fed Rate Cut & Biden’s Success

The dollar is pushing higher after a sharp selloff in the previous session. Federal Reserve Chair Jerome Powell made a surprise emergency 50 basis point cut to interest rates on Tuesday in an attempt to calm financial markets and shore up the US economy in the face of coronavirus threat to economic stability. The move came following a G7 finance ministers meeting earlier in the day where the group on ministers pledged to take whatever steps necessary to support the global economy. The move by the Federal Reserve, hit demand for the greenback.

However, the effects appear to have been short lived and the dollar is back infavour on Wednesday as investors digest the results from Super Tuesday. Yesterday in the Democrat presidential nominee battle centrist and former vice President Joe Biden staged an impressive comeback, putting him as favorite with the bookie to take on Trump.

Looking ahead US investors will turn their attention back towards US economic data with the release of the ADP private payroll figures and ISM non-manufacturing PMI.

Currencylive.com is a news site only and not a currency trading platform.

Currencylive.com 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 currencylive.com do not represent our views.