- Pakistani Rupee (PKR) treads water for a second day
- Trade deficit widens to $5.8 billion
- US Dollar (USD) calm is subdued trading after Trump is released from hospital
- US stimulus optimism caps gains in greenback
The US Dollar Pakistani Rupee (USD/PKR) exchange rate is trading flat in quiet trading. The pair settled just a few pips higher on Monday at 163.92, just above the low of the day. At 10:15 UTC, USD/PKR trades again just a few pips higher at 193.95.
According to the Pakistan Bureau of Statistics, Pakistan’s exports declined -0.94% during July – September compared to the same period last year, falling from $5.51 billion to $5.46 billion. The data also revealed that imports grew 0.56% during the same period from $11.2 billion in July – September last year to $11.26 billion in 2020. On a monthly basis imports also picked up jumping 28.2% from $3.32 billion to $4.26 billion.
As a result of slowing exports and rising imports Pakistan’s trade deficit swelled by over 2% to $5.8 billion compared to $5.69 billion in the same period a year earlier.
The US Dollar is trading in a muted manner on Tuesday versus its major peers, after experiencing a large selloff in the previous session. Demand for the safe haven US Dollar was weak as investors cheered the news that President Donald Trump had been discharged from the Walters Reed Medical Centre where he was receiving treatment for Covid-19.
With Trump back in the White House an element of uncertainty has been removed for the political picture and the elections. Trump said he intends to participate in the next Presidential debate on 15th October.
Optimism surrounding US stimulus is also keeping the US Dollar on the back foot versus its major peers. House Speaker Nancy Pelosi and US Treasury Secretary Steve Mnuchin continue talks to try to reach a bipartisan agreement after the latest round of US stimulus expired at the end of the summer.
There is little on the US economic calendar for investors to watch. Attention will turn to a speech by Federal Reserve Chair Jerome Powell.