- Pakistan Rupee (PKR) seen trending lower
- World Bank approves $300 million loan to Pakistan to build resilience to natural hazards
- US Dollar (USD) trends lower versus major peers
- Congress stimulus talks stall
The US Dollar Pakistani Rupee (USD/PKR) exchange rate continues its ascent on Thursday, after a flat finish in the previous session. The pair settled on Wednesday at 160.03 after three straight sessions of gains. At 10:15 UTC, USD/PKR trades +0.1% at 160.20.
The World Bank has approved a $300 million loan to help Pakistan address issues such as climate change, health emergency and waste management to reduce flooding in the largest cities.
The loan will help boost Pakistan’s efforts to build resilience to natural hazards such as floods and droughts. The World Bank highlighted that the projects will help to save lives and protect the economy.
Oil prices are on the rise. West Texas Intermediate +0.9% at $45.90.
Whilst the US Dollar is advancing versus the Pakistan Rupee, it is slipping versus its major peers. The US Dollar Index, which measures the greenback versus a basket of 6 major peers trades -0.05% lower at 91.05, marginally above its 2.5 year low of 90.47.
Democrats and Republicans have been unable to solve the ongoing disagreement over fiscal stimulus. Senate Majority Leader Mitch McConnel snubbed the White House’s latest $916 billion proposal. Congress is due to break on for Christmas on 18th December meaning that time is running out to clinch a deal.
Covid cases in the US continue to surge. Daily deaths struck a grim record of over 3000, whilst hospitalisations are over 100,000 for the first time putting a strain on hospitals. Cases have surged over recent week, with infections nationwide passing 14 million.
As cases rise, lockdown restrictions in some states are tightening. The impact is being reflected in the labour market. November’s non farm payroll report was far weaker than forecast. Today, jobless claims data will be in focus. Analysts are forecasting an increase in claims to 725,000, up from 710,000 the previous week.