The current exchange rate of the Pakistani Rupee (PKR) to US Dollar (USD) stands at 0.003516, which is just 0.7% below the three-month average of 0.003542. This rate has remained relatively stable, trading within a 1.9% range from 0.003508 to 0.003574 over recent weeks.
Recent forecasts suggest a strengthening of the USD driven by multiple factors, including expectations of new trade deals as indicated by the Trump administration, which are anticipated to bolster investor confidence. This could create some headwinds for the PKR. Additionally, the USD benefits from safe-haven flows amid global uncertainties, particularly geopolitical tensions like the strained relations between the U.S. and other nations, which have historically boosted the dollar's appeal.
In contrast, the PKR faces challenges due to various domestic and international pressures. The U.S. has imposed a significant reciprocal tariff of 29% on goods from Pakistan, further complicating the economic landscape. While there has been an increase in remittances sent by migrant workers from Pakistan, aimed at supporting the local economy, the ongoing job market challenges in the Middle East may limit future inflows.
Analysts indicate that if the anticipated trade deals do not meet investor expectations, the USD could encounter some downward pressure, providing a potential lift for the PKR. However, with the current geopolitical risks and rising global interest in safe-haven assets, the USD may continue to hold significant strength over the medium term. Overall, recent trends signal a cautiously optimistic outlook for the PKR, albeit contingent on broader economic developments and trade relations.