- Pakistani Rupee (PKR) is rising paring yesterday’s gains
- Imports grew 15%, exports 8% widening the trade deficit
- US Dollar (USD) trades lower versus major peers
- Stimulus & job openings for December in focus
The US Dollar Pakistan Rupee (USD/PKR) exchange rate is advancing paring losses from the previous session. The pair settled -0.15% lower on Monday at 159.25. At 10:15 UTC, USD/PKR trades +0.5% at 160.05.
Pakistan’s traded deficit widened 21% to $2.6 billion in January due to a pick up in imports to support industrial and agricultural activities.
Imports increased 15% to $4.73 billion in January compared to $4.12 billion in the same month last year. Exports also rose, but not as strongly as imports, picking up by 8% to $2.13 billion in January compared to $1.97 billion in the same month last year.
Oil continues to advance for a seventh straight session. West Texas Intermediate trades +0.3% higher adding to almost 2% gains in the previous session amid OPEC countries compliance with the output production cuts and optimism surrounding the medium-term demand outlook as vaccination programmes pick up across the globe.
The US Dollar is rising versus the Pakistan Rupee however it is falling lower versus its major peers on Tuesday. The US Dollar Index which measures the greenback versus 6 major peers trades -0.35% at the time of writing at an almost weekly low.
US Dollar weakness comes after Elon Musk’s $1.5 billion Bitcoin investment was interpreted, which has been interpreted as a vote of no confidence in the US currency amid loose fiscal and monetary policy.
Joe Biden’s $1.9 trillion covid stimulus package is likely to pass through Congress shortly. Whilst the prospect of a huge fiscal stimulus package had boost the US Dollar in recent sessions on expectations of a faster economic recovery, today investors appear more wary.
Looking ahead investors will look towards the release of US JOLTS job openings for December. However, following from Friday’s disappointing non-farm payroll numbers this data already feels out of date.
Friday’s non-farm payroll numbers showed 49,000 jobs were added in January which fell short of forecasts.