The recent forecasts for the EUR to PKR exchange rate indicate a complex interplay of factors affecting the euro and the Pakistani rupee. The euro has faced upward challenges despite positive indicators such as stronger-than-expected GDP growth in the Eurozone. Analysts note that the European Central Bank's decision to hold interest rates steady might contribute to a subdued euro, particularly as inflation data becomes available. A moderation in inflation could reinforce market expectations of potential rate cuts from the ECB in the future, further weighing on the euro's performance against other currencies.
On the other hand, the Pakistani rupee is grappling with significant geopolitical tensions that have resulted in a 12% depreciation against the US dollar since the start of 2025. The State Bank of Pakistan's interventions, highlighted by its purchase of $9 billion to stabilize foreign exchange reserves, are aimed at supporting the PKR. Moreover, the recent reforms aligned with the IMF's financial support are seen as necessary for long-term stability, albeit with risks of short-term inflation.
Recent EUR/PKR price data reveals that the euro currently trades at 325.8, marking a 1.3% decrease from its three-month average of 330.1. The euro has exhibited relative stability within a 3.6% range between 324.1 and 335.7, suggesting limited volatility. Meanwhile, oil prices, which influence the euro's value given the Eurozone's dependency on energy imports, have been somewhat lower, with OIL to USD at 65.07, approximately 1.7% below its three-month average.
Overall, the outlook for the EUR to PKR exchange rate will depend significantly on shifts in ECB policy, the stabilizing efforts by the Pakistani authorities, and the ongoing geopolitical developments affecting both regions. Economic recovery within the Eurozone, alongside the successful implementation of reforms in Pakistan, will be critical in shaping currency trends in the upcoming months.
