The US dollar is higher against the Pakistani rupee on Friday.
- Rating agency Standard & Poor’s maintained a stable ‘B’ rating on Pakistan debt
- US existing home sales rise by most on record, home prices hit record high in July
- US service and manufacturing sectors roar back in August amid reopening
USD/PKR was higher by 62 pips (+0.37%) to 168.125 as of 3pm GMT. This week the dollar-Indian rupee exchange rate is higher by +0.30%.
The currency pair snapped a 3-day losing streak to turn higher on the week thanks to Friday’s gains.
PKR: S&P says Pakistan outlook stable, keeps B-rating
The Pakistani rupee still fell on broad-based dollar strength, continuing a recent stretch of weakness that keeps the exchange rate pinned to record highs and the Pakistani rupee at record lows.
The losses may have been mitigated by news that the S&P rating agency affirmed both its long term and short term ‘B’ sovereign credit rating. The agency weighed up Pakistan’s improved internal security situation over the past few years with the constraints of its narrow tax base and still high external security, which is off-putting to investment.
USD: Home prices data jumps in USA
The dollar has continued to press the Pakistani rupee down at record lows but a more significant breakdown has been continued by the low liquidity in the market. Across FX markets the greenback was adding to its turnaround made on Wednesday having paused on Thursday.
Soft data out of the Eurozone and the usual lack of progress in Brexit talks helped the dollar move higher in early trading, then the dollar index made a new weekly high following much better than expected economic data from the United States.
Flash August US services and manufacturing data handily topped economist forecasts then home prices rose by a record amount to a new record high in July. Existing home prices jumped by a qurter in one month (24.7%). The US housing market has moved past recovery and is now being called a ‘boom’.