The GBP to PKR exchange rate has shown relative strength recently, with the pound trading at 382.1 PKR, which is 2.3% higher than its three-month average of 373.6. Analysts note that this increase falls within a stable range of 356.9 to 384.2 seen over the past few months, indicating consistent market behavior.
The recent Bank of England (BoE) decision to hold interest rates steady has provided some support to the GBP. While BoE Governor Andrew Bailey managed to temper expectations of an impending rate cut, traders are keenly awaiting upcoming UK retail sales figures. A forecasted contraction could introduce downward pressure on the pound, impacting overall investor sentiment.
On the other hand, the PKR is facing challenges primarily due to geopolitical tensions and economic constraints. The US has imposed a significant 29% reciprocal tariff on goods from Pakistan as part of broader trade conflicts, which could hinder economic growth and directly influence the PKR's value. Although remittances from migrant workers have reached record levels, they are primarily seen as a temporary measure to support families ahead of anticipated job market challenges abroad.
Moreover, the simmering tensions with India following recent air strikes add an element of uncertainty that can amplify volatility in the region, further complicating the PKR outlook. Currency experts emphasize that both domestic economic conditions and external geopolitical factors are crucial in influencing the PKR's strength against the GBP.
In conclusion, the GBP could maintain its stronger position against the PKR in the near term, driven by BoE policies and UK economic data, while the PKR remains vulnerable to external pressures. Investors should monitor these developments closely as they plan for international transactions.