- Pakistan Rupee (PKR) under pressure as covid cases grow
- Pakistan exports could be negatively hit as countries tighten lockdown restrictions
- US Dollar (USD) trades lower versus major peers after rallying in recent sessions
- US elections, stimulus and US durable goods data in focus
The US Dollar Pakistan Rupee (USD/PKR) exchange rate is heading mildly higher on Tuesday after booking losses in the previous session. The pair settled on Monday -0.35% at 160.62 close to the low of the day. At 09:15 UTC, USD/PKR trades 0.2% higher at 160.95.
Concerns that a second wave of covid is sweeping across Pakistan are on the rise. 773 new daily covid infections were reported over the past 24 hours. Since the start of the pandemic 329,375 covid cases have been recorded whilst the death toll remains low at 6,745.
Countries across the globe are seeing a second wave of the pandemic and this could be problematic for Pakistan’s exporters. Special advisor Dawood warned that as the world returns to lockdown the demand for Pakistan’s exports could also be affected.
The US Dollar is trading higher versus the Pakistan Rupee. However, it is softer versus its major peers after several sessions of gains.
Record new daily covid cases across the EU and the US have unnerved investors in recent sessions, prompting risk aversion. Fears are growing that the global economic recovery will derailed as lockdown restrictions tighten. The strong risk off sentiment has boosted demand for the safe haven US Dollar. Failure by the US Congress to agree to additional fiscal stimulus has added to the downbeat mood in the market.
However, attention is now turning towards the US elections, with less than a week to go until the 3rd November voting day. The national polls show that Democrat Joe Biden has a strong lead over President Trump. The Democrats are also expected to win the Senate. This could mean that significant fiscal stimulus could be on the cards.
US durable goods orders are due to be released later and could provide further insight into the health of the US economy.