The EUR to PKR exchange rate is currently range-bound.
Key drivers include the interest rate differential influenced by the European Central Bank's flexible policy, amidst ongoing inflation concerns in the Eurozone. The PKR has shown consistency, appreciating recently against the USD, indicating improved market confidence in Pakistan's economic stability. However, projections from Fitch Ratings suggest a gradual depreciation of the PKR, which could impact the EUR/PKR relationship.
Near-term, the EUR/PKR is expected to trade within a stable range, reflecting a tight movement. Factors such as rising oil prices, which are currently at 30-day highs, may influence the euro's strength due to implications for European energy costs.
Upside risks include further positive news from Eurozone economic growth, while downside risks stem from geopolitical tensions and potential escalations affecting investor confidence in the euro. As developments unfold in both regions, the EUR/PKR rate will remain sensitive to these economic and political dynamics.