EUR/PKR Outlook: Likely to increase, as the rate is above its recent average and near recent highs.
Key drivers:
• The European Central Bank (ECB) maintains a stable policy stance, which supports the euro against the Pakistani rupee (PKR).
• Oil prices have surged, increasing upwards of average levels, which can strengthen the euro due to its impact on economic conditions in Europe.
• Continued economic reforms in Pakistan may improve the PKR’s stability, but the general outlook still leans towards euro strength.
Range: The EUR/PKR is likely to drift upward while testing recent highs, given its current position.
What could change it:
• Upside risk: A stronger than expected economic recovery in the Eurozone could push the euro higher.
• Downside risk: Any significant economic setbacks in Pakistan, such as higher inflation or slow reforms, could weaken the PKR further, impacting the exchange rate negatively.