- Pakistan Rupee (PKR) snaps 2 day winning streak
- Foreign currency reserves drop 0.45%
- US Dollar (USD) weakens as Yellen defends stimulus
- US PMIs in focus
The US Dollar Pakistan Rupee (USD/PKR) exchange rate is moving higher snapping a two day losing streak. The pair settled -0.30% lower at 158.65. At 15:25 UTC, USD/PKR trades +0.2% at 159.00. The pair is on track to lose 0.3% across the week marking its third straight week of losses.
Foreign exchange reserves held by the central bank fell by 0.45% on a weekly basis according to data released by the State Bank of Pakistan. Foreign currency reserves held by the central bank fell was recorded at $12,889.7 million down £59 million compared to £12,949 the previous week.
According to the central bank reserves decreased owing to external debt repayments.
Oil prices fell lower on Friday, extending losses from the previous session as refineries in Texas prepared to reopen following a temporary pause in production owing to the cold snap in Texas. West Texas Intermediate fell 2.4% to under $60 per barrel.
The US Dollar is gaining versus the Rupee today. However, it is moving lower versus its major peers. The US Dollar Index, which measures the US Dollar against a basket of peers trades -0.3% at the time of writing.
The greenback trades under pressure after US Treasury Secretary Janet Yellen defended the need for further stimulus despite US retail sales coming in sharply higher than expected at the start of the week. Instead, Janet Yellen cited the softer than expected jobless claims data highlighting weakness in the labour market.
Yellen’s support for the Biden administration’s $1.9 trillion covid stimulus package comes as house speaker Nancy Pelosi indicated that the House of representatives could vote on the package as soon as next week.