- Pakistan Rupee (PKR) is under pressure
- Pakistan foreign exchange reserves rise by 19%
- US Dollar (USD) hovers around 1 month low versus major peers
- US retail sales beat forecasts, consumer confidence coming up
The US Dollar Pakistan Rupee (USD/PKR) exchange rate rising on Friday, after booking mild losses in the previous session. The pair settled -0.03% lower on Thursday at 152.55. At 11:30 UTC, USD/PKR trades +0.46% at 153.25. The pair is due to rise 0.2% this week.
Foreign exchange reserves held by the State Bank of Pakistan rose 19.1% on a weekly basis according to data released by the central bank.
Reserves held by the SBP on April 9 were recorded at $16,106.4 million, up from $2,579 million from the previous week.
The central bank attributed the significant jump in foreign exchange reserves to proceeds of $2.5 billion against the issuance of Eurobonds.
Oil prices are on track to rise 6% across the week after the EIA and OPEC upgraded the oil demand outlook and following upbeat data from the US and China.
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 -0.12% at the time of writing at 91.56 as it hovers around its lowest level in a month.
The US Dollar is extending losses despite impressive data in the previous session. US retail sales surged 9.8% month on month in March, smashing forecasts of 5.6% gains. Improved weather conditions and US households receiving stimulus checks from the government meant Americans hit the shops in droves. Retail sakes surged to its highest level in 10 months.
Jobless claims data was also impressive with the number of American’s filing for unemployment benefits dropping by 200,000 to 576,000, the lowest level since the start of the pandemic.
Looking ahead US consumer confidence is likely to catch the eyes of investors today. Expectations are for consumer confidence to rise to a post pandemic high. Stimulus checks and an improving labour market are expected to boost confidence.