- Pakistan Rupee (PKR) slips despite encouraging data
- SBP sees rebounding domestic demand
- US Dollar (USD) trades lower versus major peers
- News awaited over US additional stimulus
The US Dollar Pakistan Rupee (USD/PKR) exchange rate is advancing on Tuesday, extending gains for a second day. The pair settled on Monday +0.1% at 160.00. At 09:15 UTC, USD/PKR trades +0.3% at 160.53, at the high of the day.
According to the Pakistan Bureau of Statistics Large scale manufacturing industries output increased by 6.6% in October compared to the previous year and increased 3.9% on a month on month comparison. Overall, the output for the July – October period increased 5.4% compared to the same period a year earlier in an encouraging show of strength in the sector.
The data came as the State Bank of Pakistan said that there were some encouraging trends emerging in the economy despite surging covid cases. According to the central bank sales for cement, consumer goods and cars paint an increasingly strong picture for the first quarter of the financial year reflecting a rebound in domestic demand and confidence after the first wave of covid.
Whilst the US Dollar is advancing versus the Pakistani Rupee, it is edging lower versus its major peers. The US Dollar Index is trading -0.07% lower at the time of writing at 90.65, close to multi-year lows as risk sentiment appears to be edging higher as investors battle between vaccine optimism and soaring covid cases. The risk on mood is reflected in the US equity futures which are pointing to a stronger start on Wall Street on the open.
Hopes remain that US Congress will agree to additional fiscal stimulus before they break for the Christmas holiday on Friday.
The current proposal for a $908 billion rescue package could be split into two in the hope that it will be easier and quicker to pass through Congress.
US industrial production is the only data expected for release later.