- Pakistan Rupee (PKR) moves lower for a second session
- Exports jump 7.2% in November
- US Dollar (USD) rises on risk flows as Joe Biden’s China comments unnerve investors
- US ADP private payroll data in focus
The US Dollar Pakistan Rupee (USD/PKR) exchange rate is extending gains on Wednesday for a second straight session. The pair gained +0.2% on Tuesday settling at 159.09. At 10:15 UTC, PKR/USD trades +0.5% at 159.80.
The Prime Minister’s advisor on Commerce and Investment reported that exports in November were at the highest level in a decade. During the first 5 months on the current fiscal year, exports have increased to $9.732 billion compared to $9.545 billion over the same period last year.
According to the advisor, exports in November 2020 recorded impressive 7.2% growth compared to the same month last year.
In November 2019 exports were $2.011 billion. Meanwhile exports this November soared to $2.156 billion.
A separate report showed that inflation as measured by the consumer price index (CPI) in November rose by 0.82% month on month and rose by 8.35% over the year, mainly owing to increases in food prices. This was up slightly on October when CPI printed at 7.3% on an annual basis.
The US Dollar is pushing higher across the board. The US Dollar index which measures the greenback versus a basket of major peers trades +0.1% at the time of writing as the mood in the market soured.
Comments from US President elect Joe Biden over his stance with China dragged on risk sentiment. Joe Biden confirmed that he would not immediately undo the Phase 1 trade agreement with China. His comments suggest that US – Sino relations will take longer to normalise.
Looking ahead attention will be on US ADP private payroll data which is due to be released in the US session. Expectations are for 475,000 private jobs added in November compared to 365,000 added in October. A strong number would bode well for Friday’s non-farm payroll report.