- Pakistan Rupee (PKR) extends losses for 2nd session
- Oil trades 14% lower over 10 days
- US Dollar (USD) rises in risk off trade
- US durable goods & PMI data in focus
The US Dollar Pakistan Rupee (USD/PKR) exchange rate is moving lower a second straight session on Wednesday. The pair dropped -0.37% on Tuesday, settling at 155.13. At 10:50 UTC, USD/PKR trades -0.1% at 154.98.
Net foreign investment picked up in March, standing at $17 million for the first 20 days of March. This number, whilst small, represents a gradual return of foreign investment into Pakistan’s markets.
Over the 9 month period from July – March net divestment hit $83 million.
Oil prices tumbled over 6% in the previous session on future demand concerns amid tighter lockdown in Europe. Oil has tumbled over 14% across the past 10 days, from its recent high. West Texas Intermediate trades under $60.00.
The US Dollar is trading mildly lower versus the Rupee. However, it is trading sharply higher versus its major peers. The US Dollar Index which measures the greenback versus a basket of 6 majors, trades +0.4% at 92.14 at the time of writing.
The US Dollar is advancing on safe haven flows as rising covid cases in Europe unnerve investors and the potential of tax hikes in the US added to the risk off mood.
Europe has seen a steep rise in covid cases forcing the largest economic in the bloc, Germany, France and Italy to tighten lockdown restrictions once again. Investors are fearing the impact that a longer lockdown will have on the recovery. As a result, investors are selling out of European assets and are looking to the US Dollar for its safe haven properties.
Looking ahead US data could provide fresh direction for US Dollar investors. US durable goods are expected to rise 0.6% month on month in February, down from January’s 1.3%.
Manufacturing and service sector PMIs are also expected to be in focus, with both readings expected to show stronger expansion.