The recent exchange rate forecasts for the Saudi Riyal (SAR) against the Pakistani rupee (PKR) highlight a relatively stable environment for SAR, with rates trading around 75.29 PKR. This figure is slightly below its three-month average, reflecting a 1.6% range fluctuation between 74.89 to 76.06 PKR. Analysts suggest that the SAR remains firmly pegged to the U.S. dollar at 3.75 riyals per dollar, which provides a measure of stability.
For the Pakistani Rupee, several key developments are influencing its trajectory. The State Bank of Pakistan's recent decision to maintain the key interest rate at 12% was unexpected, marking a significant stance against further easing amid ongoing price risks and global tariff challenges. This indicates a cautious approach to monetary policy, aimed at stabilizing the PKR amidst economic uncertainties.
In addition, Pakistan's engagement in securing a $4.47 billion loan for energy sector financing is viewed positively by market experts, potentially fostering stability and enhancing investor confidence. However, geopolitical tensions, particularly the recent closure of Pakistani airspace to Indian carriers, pose risks that could affect economic conditions and subsequently impact the PKR.
Efforts to stabilize the currency include targeted actions against black market dollar trading, which have resulted in temporary support for the rupee. Moreover, a recent bilateral trade agreement with the United States is expected to facilitate increased foreign exchange inflows, which could further bolster the PKR in the longer term.
Overall, while the SAR maintains a stable outlook due to its fixed exchange rate policy, the PKR's path is more uncertain, influenced by various domestic and geopolitical factors. Forecasters recommend keeping an eye on ongoing developments in interest rates, energy sector reforms, and regional relations that may affect currency valuations in the foreseeable future.
