- Pakistani Rupee (PKR) stabilises after falling in the previous session, risk sentiment remains weak
- Pakistan’s digital economy sees huge uplift in online sales
- US Dollar (US Dollar) holds gains as Federal Reserve officials warn over rising covid-19 cases knocking the fragile economic rebound
- US Dollar Pakistani Rupee (USD/PKR) exchange rate remains above 167.00
The US Dollar Pakistani Rupee exchange rate settled +0.5% at 167.25 on Tuesday. At 09:15 UTC, USD/PKR trades -0.05% at 167.12.
Whilst risk sentiment across the global financial markets was broadly weaker, domestic data is underpinning the economy.
Pakistan has seen a huge lift in online sales as the coronavirus pandemic restricted consumers ability to go into shops. Pakistan had been investing in expanding its digital economy and promoting online businesses even before the coronavirus crisis. According to the Chief Marketing Officer at Pakistan’s largest online shopping store, online orders have grown 9-fold since March.
The State Bank of Pakistan said that the move to electronic payments could boost both consumption and trade. The central bank suggested that this could help lit the Pakistani economy by as much as 7% through the creation of 4 million jobs and adding $36 billion to the economy by 2025.
Strong risk aversion in the previous session saw investors sell out of riskier currencies such as the Rupee, instead buying into the safe haven US Dollar. The greenback rallied across the board.
The US Dollar remains well supported today as risk sentiment remains weak. Concerns over rising coronavirus numbers in the US linger as total cases surge past 3 million. California and Texas each see over 10,000 new daily cases.
Federal Reserve officials warned that the rising number of coronavirus cases in the US could damage the economic recovery. These comments also hit risk sentiment, overshadowing strong JOLTS job opening data earlier in the session.
Today there is no high impacting US data. Investors will look ahead to the release of US jobless claims figures tomorrow for further clues of the progress of the economic recovery.
