- Pakistan Rupee (PKR) strengthens as the Business Confidence Index jumps
- Employment expectations are also surged by 7%
- US Dollar is easing lower as the mood in the market lifts
- Attention turns to tomorrows Trump – Biden live debate
The US Dollar Pakistani Rupee (USD/PKR) exchange rate is trading marginally lower at the start of the new week. The pair closed on Friday +0.5% across the week at 166.10. At 09:15 UTC, USD/PKR trades just a few pips lower at 165.95, in the middle of the daily traded range.
According to the State Bank of Pakistan, the Business Confidence Survey showed that the Business sentiment has increased significantly from a record low of 39 in June to 52 in August. The data suggests that in August the business community is predominantly optimistic about business and economic conditions. The forward-looking index regarding business expectations was notably higher.
This was a stark turnaround from June’s survey with perceptions improving in both the service sector and the manufacturing sector. Perceptions regarding employment also improved substantially with the Expected Employment Index jumping 7% to 57%.
The data comes as macroeconomic indicators from Pakistan have also been on the mend, with solid improvements in exports, current account surplus, low interest rates, and high remittances.
The US Dollar is trading on the back foot versus its peers amid an improving mood in the market. At the end of last week US Treasury Secretary Steve Mnuchin and House Speaker Nancy Pelosi agreed to restart formal talks on a new coronavirus fiscal package. There had been growing fears that with the US elections just weeks away, an agreement would be put off until after the new President was elected. With the US economic recovery shows signs of slowing and the recovery in the labour market potentially even be reversing, the markets consider that fresh fiscal stimulus is needed to keep the economy supported.
There is no high impacting US data today. Investors are starting to look cautiously ahead to tomorrow’s first live Presidential debate between Trump and Biden.