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USD/PKR: Rupee Extends Gains to 4 ½ Month High

20th October 2020

Pakistan Rupee (PKR) rises for 3^rd consecutive session
Pakistan listed as 15^th most powerful Asian country
US Dollar (USD) rises versus major peers as stimulus hopes fade
US election debate in focus

The US Dollar Pakistan Rupee (USD/PKR) exchange rate is extending losses for a third straight session on Tuesday. The pair settled -0.18% lower on Monday at 162.25. At 09:15 UTC, USD/PKR trades -0.1% lower at 162.10 as the pair trades at levels last seen in early June.

Pakistan has been listed as the 15^th most powerful country in Asia according to the Autralian think tank the Lowy Institute Asia Power Index. It has seen the biggest gains in diplomatic influence. Another area of improvement was future resources measures, where it was ranked 7^th. Meanwhile its lowest ranking was in economic relationships measures where it came 20^th.

The data comes as Prime Minister Imran Khan expressed fears that a second wave of cobid-19 could hit the country, particularly the cities where levels of air pollution are very high. October and November are typically months which see high smog levels as temperatures start to drop.

The US Dollar is advancing marginally versus its major counterparts as concerns over the absence of any additional US stimulus weighs on sentiment, lifting demand for safe haven assets and currencies like the US Dollar.

The Democrats and Republicans continue fiscal stimulus talks, as the clock ticks towards the Tuesday deadline set by House Speak Nancy Pelosi. Democrat and US Treasury Secretary Steve Mnuchin said that differences between the two sides were narrowing. However, he also added that differences remain.

If the two sides fail to agree a deal by today’s deadline, then there will be no covid relief package until after the US Presidential elections.

There is no high impacting US data due for release today. Attention will turn towards the US elections with the final live debate between President Trump and Joe Biden later this week. With just 2 weeks to go until polling day, Joe Biden is leading in the national polls.