- Pakistan Rupee (PKR) strengthened on Tuesday owing to strong remittances & exports
- Oil extends gains for 8th session
- US Dollar (USD) slides versus major peers
- US CPI & Fed Powell in focus
The US Dollar Pakistan Rupee (USD/PKR) exchange rate is pushing cautiously higher on Wednesday. The pair settled -0.2% lower on Tuesday at 159.55. At 10:15 UTC, USD/PKR trades +0.3% at 160.1.
The Rupee advanced versus the greenback in the previous session thanks to healthy inflows from remittances and an increase in exports which outstripped importers demands.
The Karachi 100 closed the session lower at 46,644.
Oil prices continue to rise on Wednesday, extending gains for an eighth straight session. West Texas Intermediate trades +0.5% at $58.50, boosted by US stimulus optimism, rapid vaccine rollouts lifting the global demand outlook and OPEC+ keeping market conditions tight. API inventory data beat forecasts, whilst EIA inventory data is due later.
The US Dollar is trending lower versus its major peers, extending losses from last Thursday’s highs. The US Dollar Index, which gauges the greenback versus a basket of major peers trades -0.1% at the time of writing around a two week low.
The broad risk on mood in the market amid optimism over the global economic recovery is hitting demand for the safe haven US Dollar.
On Tuesday, data revealed that US layoffs eased whilst job openings rose in December. JOLTS job openings figures came in higher than expected jumping by 74,000 in the final month of December to 6.6 million.
Looking ahead US consumer price inflation will be under the spotlight. Analysts are expecting inflation to rise 1.5% on an annual basis in January, up from 1.4% in December. On a monthly basis inflation is expected to ease slightly to a still respectable 0.3% down from 0.4%.
A speech by Federal Reserve Chair Jerome Powell will also be closely eyed for clues over the Fed’s future direction for monetary policy.
