- Pakistan Rupee (PKR) extends losses from last week
- Current account deficit rose to $47 million in March
- US Dollar (USD) trades at 8 week low versus major peers
- US durable goods orders in focus
The US Dollar Pakistan Rupee (USD/PKR) exchange rate is on the rise on Monday, extending gains from the previous week. The pair rose 0.2% across last week, settling on Friday at 152.50. At 11:00 UTC, USD/PKR trades +0.9% at 153.92.
The Rupee is coming under pressure as the covid situation in Pakistan deteriorates. Travel restrictions are increasingly coming into force and the country has been placed on the UK travel red list.
Data wise, Pakistan reported a current account deficit of $47 million in March. The country reported a surplus of nearly $1 billion in the 9 months of the current fiscal year. This is principally down to the huge rise in worker’s remittances. Remittance have surged 26% in the same 9 month period. Improving export earnings have also helped.
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 -0.1% at the time of writing at 90.77 hitting a fresh 8 week low.
The US Dollar is trading on the front foot in a broad risk on mood in the market ahead of thew Fed rate decision later in the week.
The Federal Reserve is not expected to move on monetary policy after spending the past few months calming the markets over fears of early tightening. However, the Fed is still expected to acknowledge the improving outlook of the US economy.
Recent data from the US has been impressive. On Friday the US composite PMI hit an all time high in April as the US economy fired up on all cylinders as it reopens.
Today attention will be US durable goods orders which are expected to have rebounded in March. Analysts are expecting 2.5% increase month on month, up from -1.2% decline last month.