The AUD to PKR exchange rate is currently range-bound.
Key drivers include the interest rate expectations from the Reserve Bank of Australia (RBA), which may raise rates in early 2026 as inflation persists. This potential hike could attract foreign investment to the AUD. Additionally, the ongoing improvement in the Pakistani economy, evidenced by the PKR's consistent appreciation against the USD, provides a backdrop of increased confidence, albeit tempered by forecasts of depreciation due to fiscal pressures.
In the near term, the AUD to PKR is expected to trade within a stable range. Recent data indicates the exchange rate is just above its three-month average, reflecting relatively stable conditions.
An upside risk could emerge if the RBA raises interest rates sooner than expected, bolstering the AUD. Conversely, a significant downturn in global market sentiment could weaken the AUD as it is viewed as a risk-on currency, potentially pulling down the exchange rate against the PKR.