- Pakistani Rupee (PKR) treads water after falling across the previous week
- Coronavirus deaths fall by 87% from peak
- US Dollar (USD) trades lower amid growing concerns that rising covid cases will undermine the fragile economic recovery
- US durable goods up next, expected to show 6.5% increase
The US Dollar Pakistani Rupee (USD/PKR) exchange rate is edging a few points lower, after rallying across the previous week. The pair gained +0.4% last week, closing on Friday at 167.1. At 08:45 UTC, USD/PKR trades -0.04% at 167.02.
The number of coronavirus deaths in Pakistan dropped to 20 on Monday. According to Special Assistant to the Prime Minister on National Health Services Dr Zafa Mirza this is the lowest single day death toll in 3 months and is an 87% decline from the peak on June 20th. Pakistan’s total death toll stands at 5,842 with just shy of 275,000 cases.
Government officials have announced that the declining number of covid cases and deaths are indicators that the governments’ applied measures are working, and the pandemic situation is improving across the country.
Despite the fact that Pakistan is on the downward side of the covid curve authorities have expressed concerns that the situation could still take a turn for the worse if precautionary measures are flouted in Eidul Azha.
The US Dollar is under pressure across the board dragged lower by rising US coronavirus cases lifting concerns that the fragile economic recovery in the US could be undermined by the need to lockdown more areas. Last week data indicated that the recovery in the US labour market had stalled as the number of coronavirus cases topped 4 million.
Intensifying US – China troubles are also affecting demand for the US Dollar. This is a change of course from previously when the greenback would rise on heightened geopolitical tensions. Over the weekend China closed the US consulate in Chengdu following the US closure of the Chinese consulate in Houston. Fears are growing that the Phase 1 trade deal could soon collapse as relations between the two powers sour.
Looking ahead US durable goods orders will be under the spotlight. Analysts are expecting a decent 7.2% increase in June following an impressive 15.7% rebound in May. A strong reading could help boost the US Dollar.