- Pakistan Rupee (PKR) strengthens for 2nd straight session
- RDA remittances initiative reaches $500 million milestone
- US Dollar (USD) falls after dovish Fed
- US jobless claims in focus
The US Dollar Pakistan Rupee (USD/PKR) exchange rate is extending losses on Thursday for a second straight session. The pair settled -0.03% lower on Wednesday at 159.10. At 10:15 UTC, USD/PKR trades -0.1% at 158.95.
Prime Minister Imran Khan said in a speech on Thursday that the Pakistan economy was moving in the right direction despite the huge debt burden that it carries.
The PM highlighted the importance of surging remittances in supporting the economy thanks in part to the Roshan Digital Account initiative, which makes it easier and more secure for Pakistani’s abroad to send money back. He was also of the belief that a strong rupee was needed in order for the economy to strengthen, as the currency value falls so does investment into the country.
Separately the State Bank of Pakistan announced that Roshan Digital Accounts (RDA) have achieved the target of $500 million for remittances in 5 months.
The US Dollar is trading lower across the board. The US Dollar Index which measures the greenback versus 6 major peers trades -0.2% at the time of writing.
The Dollar is easing lower after the minutes from the latest FOMC meeting showed that the Fed was in no rush to start tapering support. Policy makers expect it to take time for the Feds goals of higher inflation and a stronger labour market to be reached.
The minutes showing the Fed’s steady stance with interest rates at near zero came as the bond market was pricing in an acceleration in inflation. The Fed, however, considers that any eventual spike in inflation will be short lived.
US jobless claims data is due later today. Analysts are anticipating weekly jobless claims decline slightly to 765,000 from 793,000 the week before. Even so, jobless claims are still high suggesting that business are struggling after the resurgence of covid.