The Pakistani Rupee is picking up off a two week low struck in the previous session. The Rupee weakened to 161.53 on Wednesday, before settling -0.5% at 161.13.

At 10:15 UTC, USD/PKR is trading -0.6% at 160.05. This is towards the lower end of the daily traded range of 159.95 – 161.15.

PKR: SBP Projections Under the Spotlight

The Pakistani Rupee is advancing despite broad risk off sentiment and more dismal data. According to the latest data from the Pakistan Automotive Manufacturers Association (PAMA), Pakistan’s auto industry witnessed its worst month for car sales ever, with 0 sales recorded in April. The data adds to mounting evidence of the paralyses experienced by the economy last month.

Investors will now look ahead to the State Bank of Pakistan’s monetary policy meeting tomorrow. The meeting comes as concerns continue to grow over the health of the Pakistan economy as lock down measures are gradually eased.

The central bank has already cut rates by 4.25% in March and April taking the rate from 13.25% to 9%. The most recent cut was on 16th April when the SBP slashed an additional 200 basis points off the rate. Some analysts believe that the SBP are in a position to cut rates further in light of the pandemic crisis and falling inflation.

Investors will be paying particular attention to the central bank’s projections for the Pakistan economy. In the last meeting the SBP had said that it expects the economy to contract by -1.5% in fiscal year 2020, before recovering to grow 2% in 2021.

USD: US Initial Jobless Claims Up Next

The US Dollar is trading on the font foot versus its major peers as investors seek out its safe have properties following a reality check from Federal Reserve Chairman Jerome Powell. Jerome Powell warned of prolonged economic weakness and called for more fiscal stimulus to help the US economy on its long road to recovery.

Investors will now turn their attention to the US initial jobless claims report. Analysts are expecting another 2.5 million Americans to have signed up for unemployment benefit in the week ending 8th May. This would take the total to 36 million Americans applying for jobless claims since the 21st March when the coronavirus crisis started. This equates to around a quarter of the working population in the US. is a news site only and not a currency trading platform. 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 do not represent our views.