pakistani rupee bank notes
  • Pakistan Rupee (PKR) rises paring yesterday’s losses
  • Oil edges lower on demand concerns
  • US Dollar (USD) rises versus peers as treasury yields climb
  • US jobless claims, GDP, & core PCE in focus

The US Dollar Pakistan Rupee (USD/PKR) exchange rate is moving lower on Thursday, paring gains from the previous session. The pair gained +0.4% on Wednesday, settling at 155.75. At 10:50 UTC, USD/PKR trades -0.5% at 154.87.

The International Monetary Fund has approved a $500 million disbursement to Pakistan for budgetary support. This latest trance brings the total disbursement of payments to $2 billion since the programme was first approved.

The programme aims to support the Pakistan government’s policies to help the economy and save lives whilst the pandemic continues, ensuring both macroeconomic and debt sustainability. According to the IMF, Pakistan has continued to make satisfactory progress under the programme.

Oil prices are falling lower after two very volatile session. West Texas Intermediate trade -2% amid growing concerns over future demand as another wave of covid sweeps across Europe, India and Brazil.

The US Dollar is trading lower versus the Rupee. However, it is trading mildly higher versus its major peers. The US Dollar Index which measures the greenback versus a basket of 6 majors, trades +0.07% at 92.60 as it continues to hover around 4 month highs.

The US Dollar is being supported by a slight up tick in US treasury yields. Us Federal Reserve Chair Jerome Powell & US Treasury Secretary Janet Yellen gave an upbeat assessment of the US economic recovery. Despite Fed Chair Powell reiterated the supportive stance of the Fed, yields have inched higher, lifting the greenback.

Attention will now turn to a barrage of US data due for release including jobless claims, the final reading for Q4 GDP and core PCE the Fed’s preferred inflation gauge.

Jobless claims are expected to fall to 730,000 in the week March 19, down from 770,000 the previous week. This would be just above the pandemic low of 711,000.

Meanwhile the Q4 GDP final reading is expected to confirm 4.1% annualized growth.