The current market bias for the USD to PKR exchange rate is bearish.
Key drivers include the interest rate differential, as the U.S. Federal Reserve is expected to cut rates further, putting downward pressure on the USD. In Pakistan, the PKR has shown consistent appreciation against the USD, reflecting improved economic stability and market confidence. Additionally, the global economic outlook and potential increased commodity prices could bolster the PKR.
Near-term, the exchange rate is expected to trade within a stable range, influenced by ongoing economic factors. Analysts indicate that the rate could see fluctuations but remain close to current levels in the near future.
Upside risks for the USD include stronger-than-expected U.S. economic data that could delay Fed rate cuts. Conversely, downside risks stem from the potential depreciation of the PKR due to projected economic challenges and current account pressures in the months ahead.
