The Pakistani Rupee is advancing versus the US Dollar on Tuesday, paring losses from the previous session. On Monday the Rupee closed 0.8% lower at 166.45 against the greenback.
At 10:15 UTC, USD/PKR is trading at 165.33 towards the lower end of the trading range of 165.25 – 166.62.
Chinese Manufacturing Sector Expands
The Pakistan Rupee is recouping losses versus the US Dollar, although it continues to trade around an all-time low amid the ongoing coronavirus crisis.
The Rupee is advancing after data from China, its close trading partner, provided a glimmer of hope that the Chinese economy is rebounding. The Chinese manufacturing PMI for March rebounded to 52, up from 35 in February. The data shows that factories in the worlds’ second largest economy are firing up again after production ground to a halt in February, owing to the coronavirus outbreak.
Elsewhere,the UN said on Monday, that developing nations will need a $2.5 trillion support package this year to help them face the economic crisis that the coronavirus pandemic is bringing. Economies, such as Pakistan’s will experience a huge hit from capital outflow and lost export earnings. The overall impact is expected to be worse than the hit from the global financial crisis, said the UN. The report said that Pakistan will be one of the hardest hit counties.
The number of coronavirus cases in Pakistan is 1,870.
US Consumer Confidence In Focus
The US Dollar was trading broadly higher versus its peers on Tuesday, albeit lower versus the Pakistani Rupee.
US Dollar investors will look towards US consumer confidence data due to be released later today by the US Conference Board. As the number of coronavirus cases in the US climbs to 160,000 markets are focusing on the virus effect on consumer attitudes and spending.
University of Michigan sentiment data last week showed morale had dropped to the lowest level since 2016. Today’s confidence data is expected to reveal a drop of a similar scale.
Low morale means households spend less as they worry about what might be around the corner. Lower consumption is bad news for the US economy.
