EUR to PKR Outlook
In the near term, EUR/PKR is trading close to the recent lows within its range, held down by risk-averse flows and geopolitical tensions. Supported by safe-haven buying in USD and CHF, the pair remains pressured by a risk-off environment. Current conditions suggest the pair may remain supported near these lows but could face further downside if risk sentiment deteriorates.
Transfer implications
- Expats: sending Euro abroad to Pakistani Rupees may find conditions slightly less favourable than recent levels.
- Travellers: exchanging Euro for Pakistani Rupees might see limited gains and could face pressure if the pair declines further.
- Businesses: paying invoices in Pakistani Rupees with Euros may find doing so less advantageous if the pair weakens.
Key drivers
- Rate gap: The Euro’s near-90-day average is supported by a modest policy stance, but the pair remains below this level.
- Risk/commodities: Risk-off mood driven by geopolitical tensions and energy concerns supports safe-haven currencies.
- Global factors: Elevated geopolitical risks are fostering safe-haven flows into USD and CHF, impacting EUR/PKR.
What could change it
- Upside risk: Improved risk sentiment or easing geopolitical tensions may support the pair’s reversal higher.
- Downside risk: Further escalation of geopolitical tensions or energy price spikes could prolong EUR weakness and push the pair lower.
