The Pakistani Rupee is extending losses versus the US Dollar on Monday. After losing ground to the safe haven US Dollar last week the Pakistani Rupee remains out of favour, despite strong easing action by the US Federal Reserve on Sunday.

At 10:30 UTC USD/PKR was trading at 158.30 after opening the session at 157.05. The pair trades towards the upper end of the daily range of 157.05 – 158.7.

Riskier Pakistani Rupee Declines

The Pakistani Rupee remains on the back foot as investors continue to move out of risker assets. Strong risk aversion in the financial markets comes as coronavirus fears escalate. Data out from China overnight shows the dire impact that the virus is having. Chinese industrial output fell to the lowest level on record in the first two months of the year, whilst urban unemployment hit its highest rate ever as coronavirus paralysed China and brought the world’s second largest economy to a halt.

China is a principal trading for Pakistan. Any economic slowdown in China will have a spill over effect on the Pakistan economy.

More countries are closing their borders, more people are in lockdown, isolation or quarantine and businesses across the globe are coming to a standstill. This is resulting in investors taking money out of riskier assets or currencies, such as the Pakistani Rupee and moving it towards safe havens.

Fed Takes Action (again)

Risk aversion continues despite the US Federal Reserve cutting interest rates by 100 basis points on Sunday. This was the second time that the Fed has cut rates in a week. Interest rates now sit between 0% – 0.25%. The Federal Reserve also restated its bond buying programme, pledging to purchase $700 billion in treasuries. Furthermore, the US central bank said it will lower bank’s capital ratio requirement to 0%.

These are all moves that will help prevent any blockages in the financial system. However, they haven’t stemmed the level of fear in the market. The US stock market is expected to open another 5% lower today. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.