The exchange rate between the Canadian Dollar (CAD) and the Pakistani Rupee (PKR) is currently experiencing fluctuations influenced by various geopolitical and economic factors. Recent analyst forecasts indicate that the CAD has faced downward pressure, notably after President Trump terminated trade negotiations with Canada, which likely heightened trade tensions and reduced confidence in the currency.
The CAD has shown signs of stabilization due to speculation around potential rate cuts by the Federal Reserve, as highlighted by Federal Reserve Chair Jerome Powell's recent comments. This has momentarily supported the loonie against the USD, and subsequently, the CAD to PKR has reached 7-day highs near 202.2, just below its 3-month average of 203.9.
Conversely, the PKR has been struggling due to ongoing geopolitical tensions and trade disruptions, resulting in a significant depreciation against major currencies. Analysts forecast the PKR could depreciate further, estimating potential rates hitting 100 PKR/USD by early 2026. The State Bank of Pakistan's interventions to bolster foreign exchange reserves and the country's agreement on economic reforms with the IMF offer some potential stability; however, uncertainty remains.
Oil price movements also play a crucial role in the CAD's performance given Canada's status as a major oil exporter. Currently, oil prices are at 14-day highs near 66.35, indicating volatility within a range of 20.4% from 60.96 to 73.37. As oil prices fluctuate, they will directly influence the CAD's strength, thus impacting the CAD/PKR exchange rate.
Experts suggest that both currencies are heavily influenced by their respective economic conditions and external market factors. As the situation develops with trade negotiations and economic policies, monitoring these trends will be vital for individuals and businesses engaging in cross-border transactions. The interplay between CAD strength, oil prices, and PKR stability will shape the currency exchange landscape in the coming months.
