- Pakistani Rupee extends losses hitting 168.80 an all-time low
- Pakistan inflation rises 0.96% on the week, 8.5% annually
- US Dollar (USD) advances as risk sentiment falters and Jerome Powell moves into focus
- US durable goods expected to show continued recovery
The US Dollar Pakistani Rupee (USD/PKR) is building on gains from the previous session. The pair settled on Wednesday +0.1% at 168.00. At 09:15 UTC, USD/PKR trades +0.4% at 168.65 after easing back from 168.80 a fresh all time high struck earlier in the session.
Inflation continues to climb in Pakistan. According to the Pakistan Bureau of Statistics the Price Sensitive Index, which measures inflation, rose 0.96% compared to the week before. On an annual basis the index rose 8.5%.
The government is attributing the rise in prices to firstly increasing prices of perishables such as fruit and vegetables owing to supply and demand fluctuations. And secondly to the Rupee depreciation, which is impacting both the price of imports and domestically produced goods.
The US Dollar is trending northwards across the board on Wednesday as risk sentiment fades and attention turns toward a speech by Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium tomorrow.
Prior to the Jerome Powell taking to the virtual stage, US durable goods orders will be in focus. Analysts are expecting purchases of long-lasting consumer goods to continue their path of recovery from the March and April lows. Analysts forecast a 2% rise in July excluding transportation. This would be a slight fall from 3.3% in the previous month, but still a solid reading.
Recent US data has painted a mixed picture. Consumer confidence dived in August to a new pandemic low, amid growing concerns over job security. Falling consumer morale often results in lower consumer spending, which is particularly bad news for the US economy which is so dependent on consumers opening their wallets.
Meanwhile the US housing market is showing resilience with new homes sales surging 13.9%, despite the rising levels of US unemployment.
