- Pakistan Rupee (PKR) weakens above 160.00
- LSM +7.4% July – November.
- US Dollar (USD) picks up off session lows versus major peers
- US CPI data in focus
The US Dollar Pakistani Rupee (USD/PKR) exchange rate is advancing on Wednesday paring gains after finishing flat in the previous session. The pair settled on Tuesday at 160.00 towards the low of the day. At 10:15 UTC, USD/PKR trades +0.4% at 160.65.
Output by Pakistan’s large industries increased 7.4% in the first 5 months of the current fiscal year. The Large-Scale Manufacturing sector registered cumulative growth of 7.4% in July – November according to the Pakistan Bureau of Statistics.
November was the third consecutive month of monthly increase, raising the prospects of annual growth of 2.1% being achieved. Even so, factories have still not returned to pre-pandemic production levels.
Oil prices continue to rise for the seventh straight session on Wednesday. West Texas rallied 1.8% yesterday and is up a further 0.3% trading at $53.3 after crude stockpiles fell by more than expected.
The US Dollar is trading higher versus the Pakistan Rupee. However, it is trading approximately flat versus its major peers. The US Dollar index, which measures the greenback versus 6 major peers is trading at 90.13, which is approximately the same level that it opened the day, having rebounded off session lows of 89.92.
The US Dollar slipped lower after the Federal Reserve reiterated that monetary policy will stay lose for some time yet. Expectations had been rising over recent sessions that the Fed could look to tighten policy in the case of huge fiscal stimulus from the Democratic government.
However, Kansas City Fed President Esther George said that she doesn’t see the Federal Reserve raising rates soon even if inflation exceeded 2%.
Attention will now turn to US inflation data, as measured by Consumer Price Index, which is due to be released later today. Expectations are for CPI to rise +0.4% month on month in December, up from +0.2% in November.