pakistani rupee bank notes
  • Pakistan Rupee (PKR) strengthens for 2nd session
  • Pakistan to receive 10 mln COVAX vaccine by June
  • US Dollar (USD) pares earlier losses
  • US ADP Payrolls in focus

The US Dollar Pakistan Rupee (USD/PKR) exchange rate is extending losses for a second straight session on Wednesday. The pair settled -0.5% lower at 157.65 on Tuesday towards the low of the day. At 11:15 UTC, USD/PKR trades -0.4% at 157.02.

The Rupee traces domestic equities higher. The Pakistan bourses turned higher on Tuesday after two straight session in the red as investors repositioned ahead of today’s Senate elections today. On the 11th March 52 senators in the house of 104 seats are set to retire.

Adding support to the Rupee is news that Pakistan will receive 10 million free covid vaccines from COVAX by June. The scheme confirmed that Pakistan will get 14.64 million doses in total.

Oil prices moved higher as investors look towards the OPEC+ meeting tomorrow. Whilst expectations had been that oil output cuts would be eased recent reports suggest that some OPEC members are keen to keep the limits in place.

After a weaker start the safe haven US Dollar is clawing higher versus other majors The US Dollar Index which measures the greenback versus its major peers now trades 0.1% on the day at 90.90.

A strong risk on mood in the financial markets weighed on demand for the US Dollar in early trade. Federal Reserve Governor Lael Brainard stuck to the Fed’s recent dovish rhetoric calming nerves over an early tightening of policy.

Adding to the upbeat news the Biden administration announced that the US will have sufficient vaccines for all adults in the US  by May. A deal between Johnson & Johnson and Merck will substantially expand J&J’s manufacturing capacity. As a result, this US economy could reopen even more rapidly than initially expected.

Looking ahead the US ADP private payroll report will be in focuds. Analysts expect 177,000 private payrolls to have been added in February. This is roughly in line with the 174,000 added in January. A strong reading could bode well for non farm payroll numbers on Friday.