- Pakistani Rupee (PKR) trades water after losses in the previous session
- Federal Government debt jumps Rs 3,419 billion YoY
- US Dollar (USD) rises versus major peers on safe haven flows
- JNJ pause covid vaccine trial
The US Dollar Pakistani Rupee (USD/PKR) exchange rate is holding steady on Tuesday. The pair settled +0.24% higher at 163.75 in the previous session. At 09:15 UTC, USD/PKR trades flat at 163.75.
According to the State Bank of Pakistan the total debt of the Federal Government was Rs 35,659 billion compared to Rs 32,240 the same month of August a year earlier. The statistics show that Pakistan’s debt has increased Rs 3,419 billion over the last year.
Separately the International Monetary Fund (IMF) has urged Pakistan to raise taxes and energy tariffs as the government struggles to revive the $6 billion IMF programme. The IMF has not released any instalments since December 2019.
The US Dollar is trading flat versus the Rupee, however it is pushing higher versus its major peers, as investors seek out its safe haven properties in risk off trade. The mood in the market has soured on disappointing vaccine news and amid the continued failure of US Congress to agree on a covid stimulus relief package.
With just three weeks to go until the US Presidential elections there is a growing sense that a fiscal stimulus deal won’t be agreed until after November 3rd.
News that Johnson & Johnson has paused its vaccine trial due to an unexplained illness in a participant is unnerving investors. Johnson & Johnson’s covid vaccine candidate is one of the lead contenders. The data will now be reviewed by an independent safety board. These pauses can be common in vaccine trials. However, given that a vaccine is the surest way to return to pre-pandemic growth, markets are particularly sensitive to vaccine news.
Looking ahead attention will turn towards on US inflation data for further clues over the health of the US economy. Consumer prices are expected to increase +0.2% month on month in September, down from 0.4%.
