The USD to PKR exchange rate is currently bearish.
Key drivers include:
- The anticipated U.S. Federal Reserve rate cuts are expected to weaken the USD in the coming months.
- Despite short-term strength, the PKR's gradual depreciation is projected due to ongoing current account pressures.
- Global economic growth is rising, positively impacting emerging markets like Pakistan, which could stabilize the PKR.
The near-term trading range for USD/PKR is expected to remain stable but could fluctuate slightly as the market reacts to ongoing economic data.
Upside risks to the PKR involve improved remittance inflows or significant foreign investment, while downside risks include the impact of ongoing inflation on the PKR, alongside potential global economic slowdowns.
Currently, USD to PKR is trading near 280.4, aligning with recent market trends but remains just below the three-month average.