The Pakistani Rupee weakened versus the might US Dollar as trading kicked off for the new week. The Pakistani Rupee was extending losses from across the month; a month which has seen the Rupee shed over 8% of its value versus the greenback. Investors are fleeing riskier currencies in favour of the safe haven US Dollar.
At 10:00 UTC, USD/PKR was trading at 166.50, at the upper end of its daily trading range of 165.1 to 167.00. It is trading close to its all-time high of 168.42 reached last week.
Pakistan Consumer Confidence Up Next
After falling to a record low versus the US Dollar last week, the Pakistan central bank reportedly intervened to stop the plunge in the Rupee, the worst performing Asian currency last week. The State Bank of Pakistan said that it is committed to a market-based exchange rate and will only intervene to address disorderly market conditions.
The news comes as the International Monetary Fund is working on Pakistan’s request for an additional $1.4 billion loan. Pakistan is requesting the funds to help address the impact of coronavirus on businesses and the economy.
Investors will now look ahead to consumer confidence data for March. Given that coronavirus outbreak started to spread in Pakistan at the end of February, the data will show the initial impact on the virus on consumer morale. Analysts are expecting consumer sentiment to plunge to 25.8 in March, down from 40.5 in February.
US Stay At Home Guidance Extended
The US Dollar is advancing across the board on Monday as investors seek out its safe haven properties. Over the weekend, President Trump dashed hopes of a rapid return to normality, instead announcing that the stay at home guidance will remain in place until the end of April. The move means that the US economy will be at a standstill for longing, raising the risk of a deeper recession.
There is no high impacting US data due for release today. However, there is plenty of US data to attract US Dollar investors’ attention across the week, including PMI readings for March, private payrolls data and the all-important US non-farm payroll on Friday.