- Pakistan Rupee (PKR) rises paring losses from Monday
- Pakistan exports rise over 8 months
- US Dollar (USD) trends higher upbeat data & risk off trade
- US ADP data tomorrow in focus
The US Dollar Pakistan Rupee (USD/PKR) exchange rate is edging lower on Tuesday. The pair settled mildly higher +0.06% on Monday at 158.45 At 09:15 UTC, USD/PKR trades -0.6% at 157.5.
Pakistan exports grew by 4.6% during the first 8 months of the current fiscal year to $16.3 billion compared to $15.643 billion in the same period a year earlier. This marks the fifth straight month that exports crossed the $2 billion level.
However, exports in February were slightly down on the same period a year earlier. Exports in February stood at $2.044 billion compared with $2.140 billion in 2020, a decline of 4.5%.
Import figures have not been released for February or the previous 8 months.
Oil prices are selling off again on Tuesday, extending the almost 3% selloff yesterday by an additional 1% as investors start pricing in an OPEC reduction in the current output cuts.
The US Dollar trades lower versus the Rupee however it is gaining ground versus its major peers. The US Dollar Index which measures the greenback versus its major peers trades +0.3% at 91.30 at the time of writing.
Risk off sentiment is boosting demand for the greenback after Chinese officials warned of asset bubbles forming in foreign markets. The comments have unnerved already jittery markets boosting demand for the safe haven US Dollar whilst equities are on the back foot.
The US ISM manufacturing PMI for February surged higher support thing the US Dollar. The PMI jumped to 60.8 in February from 58.7 the month before. This was the ninth straight month of expansion of the sector which has proved to be a bright spot through the pandemic.
There is no high impacting US Dollar due to be released today. Instead, investors will look ahead to tomorrow’s ADP private payroll numbers. These figures are a key lead indicator for the non-far, payroll numbers at the end of the week. Analysts are expecting the ADP payroll to increase by 168,000, just marginally short of January’s 174,000.