The EUR to PKR exchange rate has been influenced by a mix of economic indicators and geopolitical developments. Recently, the euro traded at 324.8 PKR, which is 1.6% below its three-month average of 330 PKR, indicating relatively stable trading patterns within a narrow range of 324.1 to 335.7 PKR.
Analysts noted that the euro’s value faces pressure amid ongoing economic challenges in the Eurozone, evidenced by a recent manufacturing PMI that suggested stagnation in factory activity for October. European Central Bank (ECB) President Christine Lagarde's policy signals will be key in shaping future euro movements; a hawkish tone could bolster the euro, while dovish sentiments might lead to depreciation. The European economic landscape has been further complicated by geopolitical tensions, particularly stemming from the conflict in Ukraine, which continues to create uncertainty and affect energy prices.
The performance of the Pakistani Rupee (PKR) adds another layer of complexity. Recent geopolitical tensions and trade disruptions have contributed to a significant depreciation of the PKR, which has fallen about 12% against the US dollar since January 2025. Experts predict that the PKR could face further declines, possibly reaching 100 PKR/USD by early 2026. The State Bank of Pakistan has intervened with substantial purchases from the interbank market to support the rupee, alongside an IMF lending agreement aimed at implementing crucial economic reforms.
The interplay between the euro and the PKR will also be influenced by global oil prices, which are currently trading at 64.44 USD, about 2.3% below their three-month average. Volatile trading patterns in oil prices can indirectly impact both currencies, particularly given the Eurozone's reliance on energy imports and Pakistan's vulnerability to oil price fluctuations that affect inflation and currency stability.
In summary, the EUR to PKR exchange rate outlook is contingent upon several factors, including ECB monetary policy, economic performance in the Eurozone, ongoing geopolitical tensions, and oil price movements. Monitoring these dynamics remains essential for making informed decisions regarding international transactions.
