Forecasts for GBP to PKR
Recent forecasts for the GBP to PKR exchange rate reflect a complex landscape influenced by geopolitical tensions, trade policies, and economic performance. Following the announcement of a 10% reciprocal tariff on UK imports by U.S. President Donald Trump, analysts caution that the British pound may face downward pressure. The uncertainty surrounding trade agreements, particularly with the U.S., adds to the currency's volatility as investors wait for concrete details from upcoming negotiations.
Despite reaching a seven-day high near 375.2 PKR, the pound remains significantly above its three-month average of 365.4 PKR, indicating strong short-term performance. However, this uptick was partly due to modest profit-taking after last Thursday's gains spurred by a positive GDP report. The currency has experienced fluctuations within a 7.4% range over the past three months, specifically between 351.7 and 377.9 PKR.
Further complicating the outlook for the GBP, events such as the recent UK-EU summit and ongoing political developments may lead to market disappointment if progress is limited, particularly regarding a new trading relationship. Analysts observe that the pound's movements are closely tied to investor sentiment and political stability, which remains under scrutiny after Brexit.
Conversely, the Pakistani rupee is impacted by its own economic challenges, including a high 29% tariff rate imposed by the U.S. as part of a broader trade conflict. Economists note that remittances from Pakistani workers abroad have provided critical support for the economy, but concerns linger about the bleak job market driving workers to repatriate funds earlier than expected.
Overall, currency experts suggest that future dynamics between the GBP and PKR will hinge on developments in UK trade policy, domestic economic recovery, and ongoing global risk sentiment, with both currencies at the mercy of the ever-changing geopolitical landscape. The position of the GBP against the PKR in the coming weeks will likely reflect these broader trends, alongside localized factors affecting each currency.
