The Pakistani Rupee is weakening versus the US Dollar at the start of the new week, after firming across the previous week. The Pakistani Rupee gained 3.4% versus the greenback last week, picking up from 166.25 to settle on Friday at 159.90, its strongest close in 5 weeks.
At 10:15 UTC, USD/PKR was trading +0.6% at 160.85. This was the top end of the daily traded range of 159.95 – 160.85.
Pakistan Coronavirus numbers Jump
The Pakistani Rupee was trading on the back foot at the start of the week as the number of new cases of coronavirus surged on the second day of Ramadan.
700 new cases of covid-19 and 12 fatalities were reported in Pakistan on Sunday. Implementing lock down is proving to be challenging for the government as several clerics in the country have urged people to ignore official advice amid the Islamic Ramadan month of fasting. The latest jump in covid-19 cases come after the World Health Organisation warned that the number of coronavirus cases in the country could surge to 200,000 by mid-July.
Political concerns are also weighing on demand for the Rupee amid reports that Prime Minister Imran Khan has been side-lined by the military during the coronavirus outbreak. Fears are growing that generals are using the coronavirus crisis as an opportunity to prove their competency in contrast to Imran Khan’s. It appears that Imran Khan’s vital relationship with the military, who backed him when he ran for office in 2018 has frayed.
US Dollar Eases On Steve Mnuchin’s Optimism
US Dollar eased versus its major peers on Monday, albeit advanced versus the Pakistani Rupee, amid improved risk sentiment in the broader financial markets. US Treasury Secretary Steve Mnuchin said that he believed that the US economy would bounce back in the third quarter, owing to the huge amount of fiscal stimulus that had been injected into the system.
There is no high impacting US data due for release today. Investors will look ahead to tomorrow’s consumer confidence figures and Wednesday’s Federal Reserve monetary policy meeting.
