The exchange rate forecast for EUR to PKR indicates a period of stability with the euro currently trading at 330.4 PKR, close to its three-month average. Recent data shows that the exchange rate has remained within a narrow range of 323.5 to 335.7 PKR. Analysts note that the euro's momentum faced a slowdown following an increase in unemployment in the Eurozone, which rose to 6.3% in August, slightly missing expectations. This could restrain the euro’s growth, especially as the market awaits insights from ECB President Christine Lagarde regarding the future of interest rates.
The euro's strength continues to be influenced by economic factors and the European Central Bank's policies, including a series of rate cuts that have complicated the euro's recent appreciation, as it has surged by more than 10% against the USD. Analysts suggest that if Lagarde signals a pause in rate cuts, it could bolster the euro further against the PKR.
On the Pakistani side, recent developments have shown a stabilization effort from the State Bank of Pakistan, which decided to maintain the key interest rate at 12% to combat ongoing inflation pressures. This strategic decision follows a prior trend of interest rate cuts. Additionally, financing measures in the energy sector and a focus on regulating the currency market through crackdowns on black market trading have contributed to a more stable outlook for the PKR.
Global oil prices also play a significant role in the exchange dynamic, with recent trading showing oil prices at $65.45 per barrel, 3.5% below the three-month average, contributing to fluctuations that may indirectly impact both the euro and PKR's value.
As the geopolitical landscape, especially concerning the ongoing situation in Ukraine, continues to influence the euro, and as domestic measures in Pakistan aim for economic stabilization, market participants should stay vigilant in observing these economic signals, as they will be vital in forecasting future moves in the EUR/PKR exchange rate.
