- Pakistan Rupee (PKR) is treading water for a second session
- Remittances are expect to reach $27.28 billion this fiscal year
- US Dollar (USD) trades around 1 month low versus major peers
- US retail sales & initial jobless claims coming up
The US Dollar Pakistan Rupee (USD/PKR) exchange rate is inching higher for a second straight session after a relatively muted finish on Wednesday. The pair settled +0.03% higher in the previous session at 152.60. At 11:10 UTC, USD/PKR trades +0.03% at 152.65.
The Rupee is trading steady, in line with small movements in the domestic equity markets. The Karachi 100 has closed 0.1% lower.
Broadly speaking, the Pakistan Rupee remains supported by strong remittances from overseas workers. Government officials have said that they are confident that foreign remittances are likely to reach $27.28 billion across the current fiscal year. The share of remittances in GDP increases to 10%.
Worker remittances have risen by 26% over the first 9 months of this fiscal year.
Oil prices are consolidating after strong gains in the previous session. Oil surged in its strongest one day session since March after both OPEC & EIA raised their global demand outlook.
The US Dollar is rising versus the Rupee. However, it is falling versus its major peers. The US Dollar Index, which measures the greenback versus a basket of major currencies trades -0.02% at the time of writing at 91.63 as it hovers around its lowest level in a month.
US Federal Reserve Chair Jerome Powell reiterated that the US central bank will keep interest rates new record lows in a speech on Wednesday. In a virtual event organized by the Economic Club of Washington, Fed Powell reassured the markets that a rate rise in 2022 was highly unlikely.
Looking ahead there is plenty of data for investors to digest today. US retail sales are expected to reveal a rebound in consumer spending. Expectations are for a 6.3% jump in sales in March compared to February, after a -2.2% decline.
US initial jobless claims will also be in focus after last week’s unexpected rise in the number of American’s seeking unemployment benefits.