• Pakistan Rupee (PKR) remains under pressure as service sector suffers from covid-19 pandemic, particularly hotel sector
  • World Bank warns the pandemic could cause $3.64 billion GDP hit to Pakistan
  • The US Dollar (USD) is trading lower versus its major peers amid a broad risk on mood in the financial markets.
  • US China tensions in focus after President Trump ends Hong Kong’s special status

The US Dollar Pakistani Rupee (USD/PKR) exchange rate is trading approximately flat for the second straight day as the pair finds support at 167.20.

According to the Federation of Pakistan Chambers of Commerce and Industry Advisory Committee, the coronavirus pandemic has badly affected the service sector. The vice President of the committee said that entire the business community particularly hotels had been badly affected.

Revenues at hotels have been strangled as corporate expenses are slashed, off-site sales meetings are not happening and travel bans means no tourism or flight crew staying at hotels. This has all caused a large dent in the industry.

The update comes after a new World Bank policy brief on the tourism sector in South East Asia estimated the potential loss to Pakistan’s GDP due to the covid-19 pandemic would be $3.64 billion. The report also says that 880,000 jobs in the Pakistan tourist sector have been put at risk by the coronavirus crisis.

Risk sentiment has received a boost from vaccine news. US biotech firm Moderna Inc reported in a peer reviewed journal that its vaccine candidate produced a robust immune response in all of its 45 participants in early stage human trials. Importantly there are no safety issues which means that the vaccine candidate can progress to Phase 3 trials which will begin later this month.

A vaccine is would enable to global economy to rebound quickly back to pre-covid levels of growth. Without a vaccine consumers are expected to remain wary, potentially preventing the global economy from returning to pre-coronavirus levels of growth, or at least delaying it for a very long time.

Whilst vaccine news dragged on the safe haven US Dollar, rising tensions between US and China are keeping risk sentiment in check. President Trump announced the end of Hong Kong’s special status in retaliation for China’s national security law.


Currencylive.com is a news site only and not a currency trading platform.
Currencylive.com 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 currencylive.com do not represent our views.