- Pakistan Rupee (PKR) extends gains in risk on trade
- Remittances in January hit $2.3 billion
- US Dollar (USD) declines on safe have outflows
- US markets closed for public holiday
The US Dollar Pakistan Rupee (USD/PKR) exchange rate is edging lower at the start of the week, extending losses from the previous week. The pair settled -0.06% lower at 159.5 on Friday. At 09:45 UTC, USD/PKR trades -0.4% at 158.8.
Risk on trade is boosting demand for riskier assets and currencies such as the Pakistan Rupee. Investors are growing increasingly optimistic of a strong vaccine led global economic recovery.
Large scale real worked data from Israel has revealed that the Pfizer vaccine has proven to be 94% effective in preventing covid.
With more and more countries ramping up their covid vaccination programmes global growth is expected to pick up across the coming quarters.
Adding support to the Pakistan Rupee was strong remittances data. According to the State Bank of Pakistan, Pakistan workers remittances exceeded $2 billion for the eighth consecutive month in January. Remittances totaled $2.3 billion, growth of 19% compared to January 2020. Although this was slightly down from December’s $2.4 billion.
The US Dollar is trading on the back foot across the board as the new week begins on safe haven outflows and amid US stimulus optimism.
The US Dollar Index, which measures the greenback versus 6 major peers trades -0.15% at the time of writing.
US House Speaker Nancy Pelosi said that she hopes to have the covid relief plan approved by the end of this month. With Trump’s impeachment trial now over, attention is expected to remain focused on US stimulus.
There is little on the US economic calendar at the start of the week with US markets closed for a public holiday today. FOMC meeting minutes, US retail sales and PMI data are due in the second half of the week.