- Pakistan Rupee (PKR) declines after Trump tests positive for Covid 19
- Pakistan exports rebound in September
- US Dollar (USD) rises as investors seek safe haven properties
- US non-farm payrolls next
The US Dollar Pakistani Rupee (USD/PKR) exchange rate is advancing on Friday paring some losses from the previous session. The pair settled -0.6% higher at 164.32 on Thursday. At 11:15 UTC, USD/PKR trades +0.1% at 164.46. Heading towards the weekend, the pair is looking at losses of 1% across the week but gains of 0.5% across the month of September.
The risk off mood in the market is driving investors away from riskier assets and currencies such as the Pakistan Rupee, which flows into safe havens such as the US Dollar are on the rise.
News that President Trump has tested positive for COVID -19 has resulted in a knee jerk sell off in risk. For now, the President is doing well. However, at 74 years old he is in a higher risk category. Whilst he is still carrying out his Presidential duties in quarantine, the main concern for the market is what this could mean for the Presidential Elections.
There was already a cloud of uncertainty over these election as Trump refused to say whether he will accept the outcome of the elections and after he said that the results could be delayed. So far the implications on the election is less clear. Markets hate uncertainty which has prompted the risk off trade.
Whilst the risk off mood dragged on the Pakistan Rupee, the tanking price of oil is offering some support and limiting losses. West Texas Intermediate is trading over 4% lower on concerns over the demand outlook after US Congress failed to agree to a stimulus package (again)
Pakistan exports showed signs of improving in September after plunging in August. Exports grew 6% in September compared to the same period last year. Exports had declined -15% year on year in August.
