- Pakistan Rupee (PKR) supported by Pakistan easing lockdown restrictions further
- Oil slips amid concerns over US economic recovery
- US Dollar (USD) trades broadly higher versus its peers as Trump bans TikTok & WeChat
- US NFP report to show 1.5 million jobs were created in July vs 4.6 million in June
The US Dollar Pakistani Rupee (USD/PKR) exchange rate is trading -0.1% lower on Friday, after three straight days of gains. The pair settled on Thursday +0.2% at 168.55, slightly off the all time high of 168.75 reached earlier in the session.
At 08:45 UTC, USD/PKR trades -0.1% lower at 168.40. Despite today’s losses, the pair is still on track for a gain in the region of 0.4%, the third straight week on gains.
The Pakistan Rupee is on the rise as various sectors of the economy are allowed to resume normal operations as from next week. With coronavirus cases on the decline, Planning Minister Asad Umar confirmed that opening procedures would be finalised shortly. Dine in restaurants, gyms, theatres and beauty salons will reopen on August 10th and a decision surrounding educational institutions will be taken in early September.
Moves to ease lockdown measures further will help reignite the economy which has been ravaged by the coronavirus crisis.
Also supporting the Rupee are falling oil prices. West Texas Intermediate is trading -0.5% lower on Friday to $41.53 a barrel, weighed down by uncertainty over the US economic recovery as Congress fails to reach an agreement over a new rescue package. Attention will be on Capitol Hill to see whether the Democrats and Republicans can agree a deal today prior to the summer recess.
The US Dollar is trending higher versus its major peers as investors seek out safe haven shelter. Rising tensions between the US and China as Trump takes aim at Chinese tech stocks is unnerving investors. Trump has signed an executive order banning popular Chinese apps TikTok and We Chat in 45 days.
Investors will now turn their attention towards the US labour Department’s non-farm payroll report. This is the most closely watched US macro data release. Expectations are for 1.5 million new job in July. This is down from 4.6 million last month.