- Pakistani Rupee (PKR) slips as central bank governor warns of the economic hardships ahead
- Risk sentiment supported by vaccine optimism although rising covid-19 numbers in the US could keep the buoyant mood in check
- US Dollar (USD) investors look ahead to non-farm payroll data, 3 million jobs are expected to have been created in June
- US Dollar Pakistani Rupee (USD/PKR) exchange rate trades close to all time high
The US Dollar Pakistani Rupee exchange rate is treading water on Thursday, just short of the record high of 168.45 reached earlier in the week. The pair settled on Wednesday flat at 167.60 after pushing up to a high of 168.17.
At 09:15 UTC, USD/PKR trades +0.1% at 167.75.
The state bank of Pakistan’s governor said that he was very concerned, firstly for the public health crisis unfolding in Pakistan but secondly for the economic crisis that is building as a result of the pandemic. He warned of further challenges on the economic front.
A 2-month lockdown in Pakistan was lifted as millions were struggling with starvation during the time of reduced economic activity. Cases of covid-19 have since surged after the lockdown was eased.
Optimism surrounding a vaccine is dragging on demand for the safe haven US Dollar, whilst supporting demand for riskier currencies across the financial markets. Pfizer and BioNTech reported a strong immune response from early stage human trials of their vaccine candidate. The news is lifting sentiment because the quickest and surest way for the global economy to bounce back would be through a vaccine being widely available.
The US Dollar is trading lower versus its major peers as investors look ahead to the US non farm payroll report. The most hotly anticipated macro report each month should shed some light on how the labour market is recovering as coronavirus cases surge in the south of the country. New daily coronavirus cases have exceeded 50,000 in the US and could quickly knock any economic rebound off course as areas halt the reopening process.
Analysts are expecting 3 million new jobs to have been created in June, adding to the 2.5 million created in May.