The recent performance of the Canadian dollar (CAD) against the Pakistani rupee (PKR) reflects a complex interplay of economic indicators and market dynamics. As of early December 2025, the CAD has reached near 60-day highs at approximately 202.8 PKR, showcasing resilience and stability within a relatively narrow trading range of 198.9 to 206.2 PKR. This movement comes as oil prices, a vital influence on the CAD given Canada's status as a major oil exporter, have risen to 14-day highs near $63.75 per barrel, benefiting from a 1.5% increase recently.
Economic developments in Canada highlight both strengths and vulnerabilities. The loonie garnered support from a robust GDP growth rate of 2.6% in Q3, surpassing expectations, which bolstered investor confidence. Concurrently, however, a potential uptick in the jobless rate to 7% could pose challenges for the currency. Analysts observe that the Canadian dollar's strength is significantly correlated with fluctuating oil prices, making it crucial for investors to monitor trends in the crude market.
On the other hand, the Pakistani rupee faces substantial headwinds, primarily from ongoing geopolitical tensions that have led to a significant depreciation of the currency, estimated at 12% against the USD since January 2025. These tensions, coupled with the central bank’s efforts to purchase dollars to stabilize reserves, have created an environment of volatility for the PKR. Experts predict that without a resolution to these geopolitical issues or significant economic reforms, the PKR could further decline, with forecasts suggesting a potential drop to 100 PKR/USD by year-end.
The interplay of these factors paints a picture of a resilient CAD against a struggling PKR, driven by both external market conditions and internal economic policies. As oil prices and Canadian economic indicators remain pivotal, traders and investors are advised to stay vigilant regarding the evolving landscape of both currencies, as global market sentiment and domestic policy will continue to shape exchange rates.
