The AUD to PKR exchange rate currently shows a bullish bias, trading at 90-day highs near 188.7, which is 2.0% above the three-month average of 185.
Key drivers for this trend include the interest rate differential, as the Reserve Bank of Australia is expected to raise rates, enhancing the AUD’s appeal. The Pakistani rupee, although strong recently with 32 days of appreciation versus USD, is projected to depreciate based on forecasts from Fitch Ratings due to domestic economic pressures. Additionally, improving economic conditions in Australia, supported by a positive outlook for inflation, contribute to the AUD’s strength.
In the near term, the exchange rate may remain within a stable range driven by current economic reports. Upside risks include more aggressive interest rate hikes from Australia, while downside risks could involve geopolitical tensions or further depreciation of the PKR stemming from economic reforms and management issues.
