- Pakistani Rupee (PKR) extends losses for 2nd session
- WTI trades +1%
- US Dollar (USD) trades lower versus major peers
- US Senate Elections in focus
The US Dollar Pakistan Rupee (USD/PKR) exchange rate is extending gains on Tuesday. The pair settled on Monday just a few pips higher at 159.80. At 10:15 UTC, USD/PKR trades +0.5% at US$160.60. This is at the top end of the daily trading range.
The Rupee weakened, tracing domestic equities lower. The benchmark Karachi 30 index closed -0.3% lower after surging in the previous session. Risk sentiment has started to sour on Monday as investors grow increasingly concerned over global covid cases which continue to rise sharply.
Oil prices moved higher. West Texas Intermediate traded +1% at the time of writing at $48 .00 as the OPEC + group failed to agree on output levels at their monthly meeting. The negotiations will continue today.
The US Dollar is trading higher versus the Pakistani Rupee, however it is trading lower versus its major peers. The US Dollar Index trades -0.1%.
Losses are smaller today than they have been as uncertainty surrounding the US Senate runoff in Georgia provided some support to the safe haven greenback.
The vote in Georgia will determine the composition of the US Senate. There are two seats up for grabs. Should the Democrats win both seats, this would result in a 50 – 50 tie in the Senate with the tie breaking vote going to Vice President Kamala Harris. This would pave an easier path for Joe Biden to push through further fiscal stimulus and infrastructure spending, adding further pressure on the US Dollar.
However, the more likely result is that the Republicans will retain control of the Senate which would be a more US Dollar positive result.
Datawise US ISM manufacturing PMI is due to be released in the US session. The PMI is expected to show 56.6 where 50 separates expansion from contraction.