- Pakistan Rupee (PKR) expected to strengthen further against USD
- Pakistan’s workers remittances expected to rise over Eid
- US Dollar (USD) edging higher paring yesterday’s losses
- US CPI awaited, 0.5% MoM expected
The US Dollar Pakistan Rupee (USD/PKR) exchange rate is pushing higher for a third straight day on Tuesday. The pair settled +0.27% higher on Monday at 152.60. At 11:10 UTC, USD/PKR trades +0.25% at 152.97.
The President of Pakistan Forex Association of Pakistan, Malik Bostan has said that he expects the Rupee to strengthen further against the US Dollar across the upcoming Eid season as remittances are forecast to rise.
Rising remittances boost foreign exchange reserves which strengthen the local currency. Pakistan has become the fourth largest country in terms in remittance inflows with India at the top and China and the Philippines following.
The US Dollar is edging higher across the board. The US Dollar Index, which measures the greenback versus a basket of major currencies trades +0.08% at the time of writing at 92.21.
The US Dollar is climbing slowly higher on Tuesday, paring gains from the previous session as US treasury yields also tick northwards.
Attention is now firmly on US inflation data, as measured by the consumer price index CPI. Expectations are for CPI to rise 0.5% month on month in March, up from 0.4% in February. On an annual basis, CPI is expected to rise to 2.5%, up from 1.7% the previous month.
The data comes following wholesale inflation figures on Friday which revealed that largest annual jump in nine and a half years. Investors are nervous that consumer inflation could surge higher as the US economy reopens and amid substantial fiscal stimulus and lose monetary policy.
The Fed has warned that it expects inflation to rise. However it has also said that it expects the rise to be temporary and there not warrant tighter monetary policy.