- Pakistan Rupee (PKR) dips lower despite domestic equities gaining
- Pakistan starts its covid vaccine drive
- US Dollar (USD) rises on economic growth prospects
- ADP private payroll due later
The US Dollar Pakistan Rupee (USD/PKR) exchange rate is advancing on Wednesday paring losses from the previous session. The pair settled -0.15% on Tuesday at 159.8. At 09:45 UTC, USD/PKR trades +0.5% at 160.55 at the high of the day.
Pakistan Rupee is trending lower despite a risk on mood in the broader financial market and a rise in domestic equities. The Karachi benchmark index rallied 0.8%. Optimism surrounding the global economic recovery and vaccination drive.
The price of oil is on the rise for a third straight session. West Texas Intermediate trades +0.7%, putting gains for the week at over 5% as it trades over $55 at a 12-month high. The price of oil continues to rise supported by an unexpected draw in oil inventories in the weekly API report. Optimism surrounding global growth is also under pinning the price.
US Dollar is trending higher versus the Pakistan Rupee and versus its major peers. The US Dollar Index which measures the US Dollar versus 6 major peers remains elevated above 91.00.
The safe haven US Dollar is edging higher despite the risk on mood in the market as investors price in stronger economic growth and the prospect of tighter monetary policy later in the year.
The US vaccine rollout programme has picked up over recent days. The Biden administration made it a policy to raise the rate of vaccinations. Now over 33 million jabs have been given which is higher than the number of people who have had the virus.
Moves by Congress towards passing Joe Biden’s $1.9 trillion covid stimulus package is helping to boost he US Dollar. Usually stimulus optimism would drag the US Dollar lower. However, investors are pricing in expected stronger economic growth and the potential tightening of monetary policy towards the end of the year.
US ADP private payroll data is due later. Analysts expect to see 49,000 jobs added.