- Pakistan Rupee (PKR) jumps higher
- Remittances, exports & IMF programme boosting the Rupee
- US Dollar (USD) rises versus majors on economic recovery optimism
- No US data today, but calendar picks up across the week.
The US Dollar Pakistan Rupee (USD/PKR) exchange rate is trading sharply lower at the start of the week, extending losses from the previous week. The pair shed 0.7% across last week closing on Friday at 155.65. At 10:50 UTC, USD/PKR trades -1.2% at 153.73.
The appreciation of the Rupee continues after it crossed the psychological level of 155 at the end of last week and trades at its pre-pandemic level of 154.27 (March 27 2020).
Improved economic sentiment and better external flows appear to be behind the strengthening of the Rupee. Remittances are growing at an excellent pace thanks in part to the Roshan Digital Account. Flows have noticeably picked up over the past 2 months. Furthermore, exports are improving with IT related exports outperforming.
With the International Monetary Fund programme back in action, sentiment surrounding the currency could well rise further.
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 +0.04% at 92.78 as it continues to hover around 4 month highs.
The US Dollar remains well supported amid an accelerating covid vaccination programme boosting economic recovery optimism.
Data at the en d of last week revealed that initial jobless claims fell to the lowest level since the start of the pandemic. At the same time, President Biden pledged to accelerate the US vaccine programme to 200 million doses in his first 100 days in office. This would only accelerate the AUS economic reopening further, highlighting the growing gulf between the US and the rest of the world.
There is no high impacting US data due to be released today. However, there is plenty to come across the week, culminating on Friday with US non-farm payrolls.