- Pakistan Rupee (PKR) weakens after 3 days of gains
- Exports rise13.4% MoM
- US Dollar (USD) slips but remains supported by Biden’s spending
- US jobless claims and manufacturing PMI in focus
The US Dollar Pakistan Rupee (USD/PKR) exchange rate is edging higher on Thursday after three straight days of losses. The pair settled -0.3% lower in the previous session at 152.32. At 11:00 UTC, USD/PKR trades +0.2% at 152.75.
According to data released by the Ministry of Commerce, Pakistan exports for March reached $2.345 billion. This is a 13.4% increase compared to the month previous and also market he highest level for exports in a decade.
Compared to March 2020, exports have risen 29.3%. However, this data is slightly misleading given that the country was in lockdown last March.
Even so, exports have now held over $2 billion for 6 months indicating a strong trend. Across the past 9 months of the financial year, July – March exports have risen by 7%.
Imports are also on the rise, growing 12% across the same period owing to a rise in imports of petroleum, wheat, soya, machinery, and vaccines, among other items.
The US Dollar is gaining versus the Rupee. However, it is trading mildly lower versus its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies trades -0.04% at the time of writing, off its 5 month high reached overnight but still over 93.00.
The US Dollar remains well supported following US President Biden’s announcement yesterday of a $2 trillion infrastructure plan. The package will improve roads, railways, broadband and clean energy, whilst being offset by a rise in corporate taxes.
This comes hot on the heels of a $1.9 trillion covid stimulus package. Furthermore, the US economy is surging ahead with a swift vaccine rollout programme ensuring that the US economy will be reopening completely, sooner rather than later.
Looking ahead, attention will now shift to the US jobless claims data and the ISM-manufacturing PMI ahead of tomorrow’s closely watched non-farm payroll report.