The euro to Pakistani rupee (EUR/PKR) exchange rate is currently bearish, reflecting recent market movements.
Key drivers include:
- The European Central Bank (ECB) maintaining steady interest rates amid caution over euro strength affecting inflation.
- Fitch Ratings forecasts gradual depreciation for the PKR, indicating a weaker outlook for the currency.
- Economic trends in both regions are influenced by inflation and growth prospects. For example, the eurozone's growth forecast is positive, while the PKR is under pressure with steady remittance inflows expected to support the economy.
In the near term, the EUR/PKR is likely to trade within a stable range, close to current price levels, as it has fluctuated modestly over the past months.
Possible changes in the outlook could arise from an unexpected rally in oil prices, which historically impacts the euro, or if the PKR faces stronger-than-expected pressures from market factors, potentially accelerating depreciation.
