- Pakistan Rupee (PKR) extends last week’s gains
- Remittances remain above $2 billion for 4th straight month
- US Dollar (USD) holds steady in quiet trade owing to public holiday
- US stimulus remains in focus
The US Dollar Pakistan Rupee (USD/PKR) exchange rate is extending losses at the start of the new week. The pair ended the previous week at 163.87 down -0.5% across the week. At 09:15 UTC, USD/PKR trades -0.08%% at 163.75 in muted trading.
Pakistan remittances remained strong in September; printing above $2 billion for the fourth consecutive month. Remittances increased to $2.3 billion up 31.2% from the same month last year and a jump of 9% compared to August.
The Pakistani Remittances Initiative combined with the gradual re-opening of major host destinations such as the Middle East, Europe and the United States has contributed the the sustained increase in workers remittances.
A serious shortage of skilled workers in Japan has sparked Japanese firms into looking for tech workers from Pakistan, according to the Japanese ambassador to Pakistan. Both countries hope to coordinate to facilitate the movement of tech labour. A move which should boost remittances further in the coming months and year.
The US Dollar traded lower across the previous week as hopes of US fiscal stimulus drove risk on trading. Investors sought riskier assets and currencies whilst shunning the safe haven properties of the US Dollar.
As the new week kicks off trading in the US Dollar is muted owing to a public holiday in the US. However, the stimulus question continues. House Speaker Nancy Pelosi and Senate Republicans both rejected US President Trump’s $1.8 trillion stimulus proposal. This was slightly higher than the Republican’s $1.6 trillion package but remains was still too far short of the Democrat’s $2.2 trillion proposal.
Looking ahead volatility in the US Dollar could pick up as the focus moves towards the US elections which will take place on 3rd November. President Trump has said that he has fully recovered from covid and will hit the campaign trail again. The polls are showing that Joe Biden so far has a lead over Trump.