The US dollar is higher against the Pakistani rupee on Monday.
- Remittances from Pakistanis abroad hits record high
- Navarro: China keeping their word on purchases
- US tightens sanctions on China telecom first Huawei
USD/INR was higher by 125 pips (+0.75%) to 168.5 as of 4pm GMT. Last week the dollar-Pakistani rupee exchange rate rose slightly by 0.15%.
The currency pair traded in a 100-pip range from 167.5 to 168.5.
PKR: Overseas remittances hit record high
The Pakistani rupee dropped after Prime Minister Imran Khan tweeted “More good news for the Pakistan economy” adding ““Remittances from overseas Pakistanis reached $2768 million in July 2020, highest ever amount in one month in the history of Pakistan.”
Pakistani workers employed abroad sent the most money back to Pakistan in a single month on record in July, according to officials. The remittances rose 36.5%, year-over-year – with the change though to be related to less spending on Haj pilgrimages because of the coronavirus pandemic.
Funds coming into Pakistan is good for the economy because it adds to the overall money supply, and should increase demand for rupees as the foreign moneys are exchanged. However traders saw the record as a sign that future remittances were likely to fall back as foreign economies slowed, removing one source of support for the Pakistan economy in the future.
USD: New US sanctions on Huawei
The US dollar was mixed on Monday as the Treasury auctioned more Treasury bills, while economic data disappointed and on mixed signals about the US China trade deal. White House trade advisor Peter Navarro said China was keeping its word on the agricultural purchases, while China made no comment on the cancelled phase one trade deal review.
At the same time, Commerce Secretary Wilbour Ross told Fox News that 38 affiliates of China tech firm Huawei were being added to the sanctions list in order to prevent them getting access to US semiconductors and software.
The New York Empire Fed manufacturing index was reported at 3.7, a far cry from the 15 expected and the 17.2 prior.
