The current market bias for the SAR to PKR exchange rate is range-bound. Key drivers include the stable peg of the Saudi riyal to the US dollar, which supports its valuation, while the PKR experiences mixed signals from recent developments. Despite a recent period of appreciation against the US dollar, forecasts suggest a potential depreciation for the PKR due to anticipated economic adjustments, with Fitch projecting a decline.
The near-term trading range for SAR to PKR is expected to remain stable, reflecting minor fluctuations around current levels. Recent trading data indicates that SAR to PKR is near 14-day lows, within a narrow range.
Upside risks may arise from further improvements in Pakistani economic policies or increased foreign investment, while downside risks include heightened inflation or deteriorating economic indicators in Pakistan that could accelerate the PKR's depreciation.