- Pakistan Rupee (PKR) extends losses for 4th consecutive session
- UN warns global FDI to decline 5% – 10% this year
- US Dollar (USD) advances versus major peers
- Biden’s stimulus plans in focus
The US Dollar Pakistan Rupee (USD/PKR) exchange rate continues its climb higher at the start of the week, extending gains for a fourth straight session. The pair settled 0.06% higher on Friday at 160.35. At 10:30 UTC, USD/PKR trades +0.3% at 160.85 at the high of the day.
Global foreign direct investment is expected to experience a U- shaped recover according to the Unite Nations, unlike a V-shaped recovery which the GDP is predicted to see this year.
The UN warned FDI should bottom out this year before ticking higher in 2022. FDI collapsed 42% from $1.5 trillion in 2019 to just $859 billion in 2020 and could decline a further 5% – 10% across this year. Investors are expected to remain cautious in committing funds to overseas assets.
After a weaker start, the US Dollar is edging higher across the board. The US Dollar Index which measures the value of the greenback versus 6 major peers trades +0.05%, picking up from -0.1% losses at the start of the European session.
The US Dollar is has picked up slightly but demand remains weak for the safe haven as optimism surrounding a covid stimulus package keeps risk sentiment buoyant. US equity futures are pointing to a higher start on Wall Street reflecting a cautiously optimistic mood.
Investors remain optimistic that Joe Biden will manage push his $1.9 trillion covid stimulus package through Congress in the coming weeks, despite some opposition from Republican Senators.
Should the massive additional stimulus be agreed by Congress, economists forecast US economic growth to pick up to 5.8%, from a previously expected 3.2%.
There is no high impacting US economic data today. Investors will be looking ahead to the US Federal Reserve policy meeting announcement on Wednesday. The Davos online World Economic Forum also begins today and runs across the week.