The exchange rate forecast for EUR to PKR highlights a complex landscape shaped by geopolitical developments and economic indicators. The euro (EUR) recently gained against several currencies, including the PKR, driven by optimism surrounding potential peace negotiations related to the ongoing Ukraine conflict. Analysts suggest that continued positive news could further strengthen the euro, although some caution is warranted given Germany’s stalling economy and recent disappointing economic data.
On the other hand, the Pakistani rupee (PKR) faces significant downward pressure, largely due to escalating geopolitical tensions, which have contributed to a 12% depreciation against the US dollar since January 2025. Projections indicate a potential decline to around 100 PKR/USD by year-end, reflecting ongoing challenges such as reduced remittances, investor concerns, and trade deficits. Despite record remittances enhancing foreign exchange reserves, the PKR struggles to maintain stability amid these pressures.
The European Central Bank (ECB), having shifted to a dovish monetary policy after a series of rate hikes, may influence the euro's trajectory in the near future. Forecasts indicate a potential cut in rates to 3.5% by late 2025, which could narrow the interest rate differential with the US Federal Reserve and impact investor sentiment towards the euro. Meanwhile, the approval of Bulgaria's accession to the eurozone and the euro's recent appreciation against the USD may support its value, provided geopolitical and economic conditions stabilize.
Current market data shows that the EUR to PKR rate stands at 325.4, slightly below its three-month average of 329, within a stable range of 323.3 to 335.7. This relative stability contrasts with the volatile fluctuations in oil prices, which remain a critical factor for both currency values. The price of Brent Crude oil is currently at 62.64 USD, approximately 4.0% below its three-month average, reflecting ongoing volatility that could further affect the euro’s strength and, consequently, its exchange rate with the PKR.
In summary, the dynamics between the euro and the Pakistani rupee reflect a blend of optimism influenced by geopolitical developments and economic fundamentals that require careful monitoring as market conditions evolve. Both currencies are poised for potential fluctuations based on upcoming economic data, geopolitical events, and shifts in monetary policy.
