Can Pak Rupee Recover to Rs. 220-230 Against US Dollar By Early 2025?
By
April 13, 2024
The Pakistani Rupee is expected to strengthen by about 20 percent against the US Dollar in the coming months, reaching around 220 PKR per USD compared to the current rate of 277.9 PKR per USD.
This rise is due to the real interest rate turning positive for the first time in three years. Positive interest rates can help reduce the cost of borrowing and lessen pressure on foreign exchange reserves. Analysts believe that if inflation continues to decrease, it could further support the recovery of the Pakistani Rupee.
Some experts predict that the PKR could reach the 220-230 range by early 2025. They expect the State Bank of Pakistan to reduce its lending rate soon, which would increase the real positive interest rate even more, making it cheaper for Pakistan to borrow money.
However, there are mixed opinions about the future of the PKR. Some traders believe that the balance of payments could worsen due to a possible shortage of oil in the global market. Others think that recent fluctuations in the exchange rate were driven by demand and supply issues, particularly from importers anticipating higher profits in the future.
Overall, the future of the PKR depends on various factors, including global economic conditions and Pakistan’s adherence to potential IMF reforms.
