Forecasts for GBP to PKR
Recent forecasts and currency market updates indicate a mixed outlook for the GBP to PKR exchange rate. Analysts point to rising political tensions in the UK, particularly surrounding local elections, which could contribute to continued volatility for the British pound. The absence of significant UK economic data this week leaves traders uncertain about the pound's direction, leading to sideways trading as investors assess the potential implications of political instability.
Compounding the situation is the introduction of a 10% tariff on UK imports by the US, part of a broader trade war initiated by former President Trump. Such measures can create downward pressure on the GBP, exacerbating concerns around its value against the Pakistani rupee (PKR). With the GBP currently trading at 374.2, this is notably 3.7% above its three-month average of 360.8, suggesting a period of heightened volatility, with past trading ranges fluctuating between 345.5 and 377.9.
For Pakistan, the economic landscape is shaped by a 29% reciprocal tariff on its goods entering the US, which presents its own challenges. However, a recent increase in remittances from migrant workers defying pandemic expectations has offered some support to the PKR. These remittances are crucial at a time when the job market, particularly in the Middle East, remains grim.
Looking forward, the strength of the GBP against the PKR will be influenced by multiple factors, including the UK’s economic recovery trajectory, decisions by the Bank of England regarding monetary policy, and broader global trade dynamics. Experts suggest that the interplay of these elements will be crucial in determining both currencies' movements as markets seek to navigate the evolving landscape.
