- Pakistan Rupee (PKR) declines as covid concerns rise
- Domestic equities head lower
- US Dollar (USD) trades higher after more strong data
- US personal income and spending jumped in March
The US Dollar Pakistan Rupee (USD/PKR) exchange rate is advancing on Friday snapping a two day losing streak. The pair settled -0.55% lower on Thursday at 153.4. At 14:00 UTC, USD/PKR trades +0.45% at 154.05.
The Rupee traced domestic equities lower on Friday. The Karachi 100 benchmark index closed the day -1.3% lower. Concerns over rising covid cases led investors to sellout of equities amid fears that Pakistan could go into complete lockdown.
Foreign institutional investors were net sellers during the trading session according to data complied by the National Clearing company of Pakistan.
Parts of Pakistan are starting to tighten lockdown restrictions in covid hotspots in order to stem the spread of covid. This will undoubtedly have an impact on the economic recovery in Pakistan.
The US Dollar is advancing across the board on Friday. The US Dollar Index, which measures the greenback versus a basket of major currencies trades +0.7% at the time of writing at 90.62. Despite the rise, the US Dollar index is set for weekly losses.
The US Dollar is surging after yet more upbeat data. US consumer spending rebounded in March as households received additional covid stimulus checks from the federal government. According to the Commerce Department, consumer spending jumped 4.2% last month after falling 1% in February.
Most middle income families in America received a one time $1400 stimulus check which boosted personal income by 21.1% after a 0.7% drop in February.
The data came hot on the heels of impressive GDP data in Thursday. The data revealed that the US economy grew at a quicker pace in the first three months of the year tan at the end of last year. Q1 GDP came in at 6.4%, up from 4.3% and ahead of the 6.1% forecast.
Recent data suggests that the US economic recovery is on track.