- Pakistan Rupee (PKR) traces equities lower
- Remittances surge 24.1% YoY
- US Dollar (USD) falls versus major peers
- US initial jobless claims up next
The US Dollar Pakistan Rupee (USD/PKR) exchange rate is advancing on Thursday extending gains for a second straight day. The pair settled +0.1% higher at 156.65 in the previous session. At 11:00 UTC, USD/PKR trades +0.2% at 157.00.
According to the State Bank of Pakistan, workers remittances rose in February by $2.266 billion, in what was hailed an exceptional performance.
Month on month this was a 0.3% decline compared to January’s $2.273 billion. However, on a year on year basis this was a 24.1% increase.
Furthermore, on a cumulative basis remittances rose an unprecedented $18.7 billion in the July- Feb period, also up 24.1% compared to the same period last year.
The central bank has been transforming the remittances process, through digitalization which is intended to make it easier to send money back. The figures suggest that this is working.
domestic equities tanked lower with the Karachi 100 closing down 2%, as the selloff continues.
The US Dollar is trading lower versus its major peers on Thursday. The US Dollar Index which measures the greenback versus a basket of major peers trades -0.3% at 91.55 at the time of writing, marking its third straight day of losses.
US core inflation rose just 0.1% month on month in February below forecasts, whilst core CPI rose 1.3% on an annual basis which also fell short of forecasts. The data has calmed runaway inflation expectations which had been mounting.
A successful US 10 year bond auction added to the upbeat mood. Demand was sufficient to drive down yields. High yields had been responsible for boosting the US Dollar to multi-month highs which dragging on demand for equities.
Looking ahead the US initial jobless claims data release will be closely watched. Expectations are for 725,000 Americans to have signed up for unemployment benefits for the first time. This is down slightly from the 745,000 the previous week.