The current exchange rate for Hong Kong Dollar (HKD) to Pakistani Rupee (PKR) has hit a 90-day low of approximately 36.00, which is slightly below its three-month average of 36.26. The currency pair has maintained a relatively stable range, trading between 36.00 and 36.54 in recent times.
Recently, the Hong Kong Monetary Authority (HKMA) executed a series of interest rate cuts and interventions in the foreign exchange market to support the HKD. In late October, the HKMA reduced the base interest rate by 25 basis points to 4.25%, closely aligning with the U.S. Federal Reserve's decisions. This aims to boost economic activity amidst facing pressures to maintain the currency peg within the 7.75 to 7.85 per USD range. Analysts suggest that the HKD's stability will heavily depend on these ongoing interventions and the liquidity conditions in the banking sector.
In contrast, the PKR has been facing significant challenges, primarily due to geopolitical tensions that have resulted in a notable depreciation of around 12% against the USD since the beginning of 2025. Forecasts indicate the PKR could decline further to around 100 PKR/USD by year-end. The State Bank of Pakistan has intervened by purchasing substantial amounts of foreign currency to support the PKR, though this has created artificial demand.
Moreover, the crackdown on currency smuggling has temporarily strengthened the PKR, but overall economic instability fueled by high inflation and engaging IMF reforms continues to put pressure on the currency. Economists believe that the interplay of these developments will keep the PKR under pressure, hindering its potential recovery.
As both currencies face distinct pressures—HKD from local monetary policies and PKR from geopolitical and economic factors—forecasts remain cautious. For those engaging in international transactions, monitoring these trends will be crucial for managing exchange rate risks effectively.
