The EUR to PKR exchange rate is currently range-bound as recent developments create a mixed outlook.
Key drivers for the euro include the European Central Bank (ECB) maintaining interest rates while expressing caution over a strong euro potentially lowering inflation. Economic growth in the Eurozone is projected to improve but remains challenged by geopolitical tensions, notably the ongoing war in Ukraine.
On the other hand, the PKR has shown consistent appreciation against the US dollar, supported by positive market sentiment and privatization efforts in Pakistan's airline sector. However, forecasts from Fitch Ratings suggest a gradual depreciation of the PKR due to current account pressures, with estimates indicating the PKR could weaken against the dollar in the near future.
In the near term, the EUR to PKR is expected to trade within a stable range. Upside risks for the euro could stem from stronger-than-expected economic data from the Eurozone, while downside risks may arise from escalating geopolitical tensions or disappointing consumer confidence levels.