The recent performance of the USD to PKR exchange rate has been influenced by several economic indicators and geopolitical events. As of now, the USD is trading at 283.9 PKR, which is just 0.7% above its three-month average of 282 PKR, maintaining a stable range of 279.8 to 285.1 PKR over that period. This stability comes amid stronger-than-expected U.S. jobs data and a decrease in unemployment rates, which have bolstered investor confidence in the dollar.
Analysts highlight that the U.S. dollar's strength is derived significantly from robust economic indicators, such as the recent non-farm payrolls report showing an increase to 147,000 jobs in June, exceeding forecasts. This, coupled with a strong ISM services PMI result, suggests a resilient U.S. economy, prompting some forecasters to predict continued short-term strength for the USD.
Meanwhile, geopolitical tensions, particularly between India and Pakistan, along with the recent U.S. tariffs on Pakistani goods, may place downward pressure on the Pakistani Rupee (PKR). This tariff could strain Pakistan’s trade balance and limit economic growth, further complicating the PKR’s stability. Additionally, the substantial remittances from Pakistani migrant workers, although positive for the local economy, may not be sustainable as many send money home in anticipation of returning due to a challenging job market.
Overall, the ongoing economic performance of the U.S. and its safe-haven status amid global uncertainties contribute to a stronger outlook for the USD against the PKR. Future movements in the USD to PKR exchange rate will likely depend on U.S. Federal Reserve policies, regional geopolitical developments, and the overall stability of economic conditions in both countries.