- Pakistani Rupee (PKR) gains after FDI rises in Jul – August period
- Netherlands and Malta responsible for 54% of inflows
- US Dollar trades lower across the board on concerns over its economic recovery
- Consumer confidence data in focus
The US Dollar Pakistani Rupee (USD/PKR) exchange rate is trading lower on Friday, extending losses for a second session. The pair settled -0.3% on Thursday at 166.00. At 10:15 UTC, USD/PKR is trading -0.1% at 165.82. The pair is on track for marginal gains across the week, after falling for the past two weeks.
According to the State Bank of Pakistan, Foreign Direct Investment (FDI) soared by 40% during the first two months of the new fiscal year (FY2021) compared to the previous year. In the July – August period foreign investors made $277 million in FDI compared with $162 million in the same period the year before.
Inflows mainly from Netherlands ($41 million), Malta ($37 million) and Norway ($45 million), with these three countries contributing 54% of the total figure.
The US Dollar is trading lower across the board. The greenback is under pressure as concerns grow over the US economic recovery. Weaker than forecast US data on in the previous session cast doubts over the outlook for the US economy.
US initial jobless claims were higher than expected, with 860,000 Americans signing up for unemployment benefits. This was just a marginal improvement on the 893,000 initial claims from the previous week.
Both the housing starts and the Philadelphia Fed business index fell, missing analysts’ estimates. The disappointing macro data came after the US Federal Reserve that it expected economic contraction in the US this year to be less severe than initially feared. The US central bank now sees -3.7% GDP contraction this year versus -6.5% previously forecast.
Looking ahead, US Michigan consumer confidence data will be in focus. Economists are predicting a slight tick higher in morale to 75 for September, up from 74.1.