Recent forecasts indicate a stable yet slightly bullish outlook for the Saudi Riyal (SAR) against the Pakistani Rupee (PKR). Currently, the SAR to PKR exchange rate is hovering around 75.38, marking a 7-day high that is about 0.5% above its 3-month average of 74.97. The currency pair has demonstrated notable stability, trading within a narrow range of 73.94 to 75.50 over the past few months, suggesting limited volatility.
Analysts attribute this stability in part to the SAR's fixed peg to the U.S. dollar at a rate of 3.75 riyals per dollar, which provides a robust foundation for the currency amid shifting economic landscapes. Furthermore, the ongoing remittances from Pakistani workers abroad, particularly from the Middle East, have underscored the resilience of the PKR, despite the challenging economic situation exacerbated by geopolitical tensions and tariff pressures.
Economists point out that the recent escalation in conflict between Pakistan and India could introduce some uncertainty into the PKR's movements. The potential for economic sanctions or further trade tariffs from the U.S. remains a critical concern, especially with the current reciprocal tariff on Pakistani goods standing at 29%. Such factors could influence the strength of the PKR and, by extension, its exchange rate against the SAR.
As migrant workers continue to send home substantial amounts of money, analysts warn that this trend may not be sustainable long-term. Many workers appear to be remitting cash in anticipation of difficult job prospects upon their return, particularly in the Middle East, where economic recovery remains sluggish post-pandemic.
Market watchers suggest that while the SAR may maintain its current levels against the PKR for the near term, any significant shifts in geopolitical relations or changes in economic policies could impact this forecast. Individuals and businesses involved in international transactions should remain vigilant and consider these factors when planning their currency exchanges.