Forecasts for AED to PKR
The current exchange rate between the UAE dirham (AED) and the Pakistani rupee (PKR) shows the AED trading at a 7-day high near 77.05 PKR, which is slightly above its three-month average of 76.56 PKR. The AED to PKR exchange has remained relatively stable over recent months, fluctuating within a modest 2.1% range between 75.49 and 77.10 PKR. This stability is partly attributed to the peg of the dirham to the US dollar, which has kept its exchange rate consistent since 1997.
Analysts note that the economic landscape for Pakistan is currently challenging, primarily due to external pressures such as the 29% reciprocal tariff imposed by the US on Pakistani goods, a lingering consequence of trade tensions. Furthermore, geopolitical tensions, highlighted by recent military actions between India and Pakistan, are adding uncertainty to the economic outlook, which could impact investor confidence and currency stability.
In the remittance sector, which is crucial for the Pakistani economy, there has been a notable increase in funds sent home by migrant workers. As reported, these remittances have recently reached record levels, defying expectations set during the pandemic. However, this uptick may be attributed to workers anticipating their return to Pakistan amid a bleak job market in the Middle East, rather than a long-term economic recovery.
Market experts anticipate that these factors could influence the AED/PKR exchange rate, with fluctuations likely dependent on geopolitical developments, trade relations, and ongoing changes in remittance flows. Overall, while the AED maintains its peg to the USD, the PKR's value faces pressures that could lead to volatility in the near term.