The exchange rate forecasts for the AED to PKR indicate a stable yet cautious outlook, influenced by various domestic and international factors. Currently, the AED is trading at 76.72 PKR, which is slightly below its three-month average of 77.16, indicating relatively stable conditions over the past few months within a range of 76.28 to 77.67 PKR.
For the UAE Dirham (AED), anticipated economic resilience is expected to bolster its value. Analysts project GDP growth between 4.1% to 6.2% for 2025. Such growth is fueled by strong consumer spending and foreign direct investment, which are key drivers of economic activity. The Central Bank's decision to maintain interest rates at 4.4% reflects a cautious approach amid global uncertainties. Additionally, inflationary pressures arising from a weaker US dollar are likely to influence import costs, indirectly affecting the AED's strength.
Conversely, the Pakistani Rupee (PKR) faces several challenges. A projected interest rate cut to 10.5% amidst stabilizing inflation may weaken the currency, according to economists. The recent crackdown on black market dollar trading has provided some support for the PKR. However, ongoing geopolitical tensions with India and a government projection of a 3.6% depreciation in the PKR for the upcoming fiscal year add to the uncertainty surrounding its stability. Market experts highlight the implications of increasing trade agreements with the United States, potentially introducing positive foreign investment, which could stabilize the PKR in the medium-term.
In light of these factors, analysts suggest that while the AED may maintain its relative strength, the PKR's performance could be volatile, influenced by both domestic policies and international relations. Economic indicators from both nations will be essential to monitor as they develop, impacting future exchange rate trends.
