The current exchange rate for AED to PKR is experiencing notable pressure, trading at 60-day lows around 76.48, which is slightly below the three-month average of 76.98. The rate has demonstrated stability within a narrow 1.4% range, fluctuating between 76.28 and 77.37 over recent weeks.
Recent developments regarding the UAE dirham (AED) indicate a mixed outlook for its strength against the Pakistani rupee (PKR). Analysts suggest that the UAE's recent currency swap agreement with Turkey, valued at 18 billion AED, is likely to enhance liquidity and facilitate financial transactions, which contributes positively to the AED's stability. Additionally, the International Monetary Fund's (IMF) recent affirmation of the UAE's economic resilience, projecting a GDP growth of 4.8% for 2025, further reinforces confidence in the AED.
On the contrary, the Pakistani rupee faces significant downward pressures from geopolitical tensions, which have led to a 12% depreciation against the US dollar since the start of 2025. Forecasts from various market analysts suggest this trend could continue, with estimates predicting PKR could decline to 100 PKR/USD by early 2026. The State Bank of Pakistan's interventions to bolster reserves, including the purchase of $9 billion, signal an effort to stabilize the PKR, but the long-term outlook remains cautious given these external pressures.
The IMF's support for Pakistan through a $3.5 billion loan indicates a pathway for potential stabilization through economic reforms. However, implementation challenges and inflation concerns remain as the government seeks to bolster the PKR's standing in the long run. Furthermore, the crackdown on illegal currency trading by the authorities may provide some temporary relief, but the overall impact of geopolitical tensions continues to weigh heavily.
In summary, while the AED could be supported by positive economic indicators, the PKR's outlook appears more precarious, influenced by both domestic interventions and external pressures. This complex interplay suggests that businesses and individuals monitoring the AED to PKR exchange rate should stay vigilant in the coming months as these factors evolve.
