- Pakistan Rupee (PKR) edges lower
- UAE has suspended the issuance of work & employment visas
- US Dollar (USD) broadly under pressure after disappointing US jobs data
- US Thanksgiving holiday so quiet trade expected.
The US Dollar Pakistan Rupee (USD/PKR) exchange rate is edging higher snapping a two day losing streak. The pair settled -0.75% in the previous session at 159.10, towards the lower end of the daily traded range. At 10:15 UTC, USD/PKR trades +0.05% at 159.17 in what is expected to be a quiet day of trading owing to the US Thanksgiving public holiday.
Concerns are growing that Pakistan is losing a share of the jobs market to India grow, after the United Arabs Emirate has suspended the issuance of work or employment visas to 13 countries including Pakistan. This is a move which could negatively impact remittances and the Pakistan economy.
Initially the suspension was expected to limit visit visas, however UAE authorities have confirmed that work and employment visas have also be banned until further notice.
Tens of thousands of Pakistani workers have been employed in the UAE in different sectors and send remittances considered to be key to Pakistan’s foreign exchange reserves.
The US Dollar is trading marginally higher versus the Pakistan Rupee on Thursday. However, the greenback is trading on the backfoot versus its major peers as investors digest mixed data from the previous session combined with continued optimism surrounding a covid vaccine and expectations of further easing by the Fed in December.
Wednesday’s data deluge painted a mixed picture of the US economy. Whilst Q3 GDP came in line with expectations, durable goods beat forecasts. However, concerns grew over the state of the US labour market after initially jobless claims rose again to 778k. This was the second week of rising claims, and the highest level for 5 weeks providing a strong signal that the recovery in the US labour market has stalled and appears to be reversing.