- Pakistan Rupee (PKR) slips but still set for weekly gains
- Trades back below 160 after hitting 168.44 record high 3 months ago
- US Dollar (USD) trades broadly lower versus major peers on fiscal stimulus hopes
The US Dollar Pakistani Rupee (USD/PKR) exchange rate is edging higher on Friday snapping a three-day losing streak. The pair settled on Thursday -0.06% at 159.00. At 10:15 UTC, USD/PKR trades +0.2% at 159.35. The pair is in line to book small losses across the week.
The Rupee has rebounded from its all time low of 168.44 at the end of August and remains resilient below 160.00. The improvement in the currency over the past three months has been thanks to stable foreign reserves and a return to current account surplus thanks to record remittances.
Separately Pakistan also secured $1.4 billion in emergency loans from the International Monetary Fund, which also receiving funds from the World Bank and Asian Development bank to help tackle the covid pandemic and economic fallout.
Today market sentiment is easing slightly which explains the slight tick lower in the riskier Pakistan Rupee. Concerns over the soundness of the AstraZeneca covid vaccine trial is unnerving investors. This had been dubbed the develop world’s vaccine given its cheap price point and easy distribution given it can be stored at room temperature.
The US Dollar is advancing versus the Rupee but is slipping a few points lower versus it’s major peers in quiet Thanksgiving trade. Investors are broadly expecting the new Joe Biden administration to back large-scale fiscal stimulus to ease the covid hit to the economy which is pulling on the greenback.
Furthermore, there is also growing expectation that Joe Biden will look to implement tougher measures to stem the spread of coronavirus as large areas of the US see a jump in new infections. Biden has called on Congress to pass a fiscal stimulus bill before the start of the new year when he officially takes office.
There is no US data due for release today. Whilst US markets open for half a day, volumes are expected to be light.