- Pakistani Rupee (PKR) pares gains from the previous week
- Remittances stay over $2 billion for 3rd straight month
- US Dollar (USD) trades lower versus major peers in risk on trading
- AstraZeneca restarts covid-19 vaccine trials
The US Dollar Pakistani Rupee (USD/PKR) is pushing higher on Monday after falling across the previous week. The pair lost -0.3% last week, settling on Friday -0.46% at 165.70. At 09:30 UTC, USD/PKR trades +0.5% at 166.20.
According to the State Bank of Pakistan, Pakistan remittances continued its solid run in August. Overseas remittances remained over $2 billion for a third consecutive month. Remittances rose to $2.095 billion, 24.4% higher compared to the same month last year. It was largely as the State Bank of Pakistan was expecting.
In July remittances flowing into Pakistan reached a record $2.76 billion. Over the past three months alone remittances have surged 37.2% compared to the same period the year before. This is an encouraging sign for
The US Dollar is trading broadly lower versus its major peers in risk on trading. News that AstraZeneca has restarted covid-19 trials after briefly pausing them last week. The AstraZeneca covid vaccine is widely considered to be one of the most advanced in development and is one of the best bets at tackling the covid pandemic. The news has boosted flows out of the safe haven US Dollar.
There is no high impacting US data due for release today. Investors are looking ahead to the Federal Reserve’s monetary policy announcement on Wednesday. The Fed are not expected to adjust policy this time. The central bank announced a shift in policy framework to Average Inflation Targeting (AIT) which allows for periods of over target inflation to allow for periods where inflation has been below target.
Any losses in the US Dollar could be capped by rising US – China tensions. The two powers have started a new war of words over the detention of 12 Hong Kong pro-democracy activists.