Pakistani Rupee Strengthens Against Saudi Riyal(Exchange rates Thursday, 7 December)

The Pakistani Rupee (PKR) continued its upward trajectory against the Saudi Riyal (SAR) on Thursday, reaching a high of PKR 75.88. This represents a gain of Rs. 0.04 for the PKR since Wednesday's closing rate

The strengthening of the PKR can be attributed to several factors, including

• Increased remittances from Pakistani workers abroad: Remittances from overseas Pakistanis, particularly those working in Saudi Arabia, have been a significant source of foreign currency for the country. The recent increase in remittances has helped to boost the PKR's value.
• Stronger economic performance: The Pakistani economy has shown signs of improvement in recent months, with GDP growth exceeding expectations. This has boosted investor confidence in the PKR and attracted foreign investment.
• Saudi Arabia's decision to continue oil production cuts: Saudi Arabia's decision to maintain its voluntary oil production cuts until the end of December has helped to support oil prices, which has indirectly benefited the PKR.

Analysts suggest that the PKR is likely to remain stable in the near term, with the possibility of further appreciation if current economic trends continue. This could be good news for Pakistani businesses and consumers, as it could lead to lower import prices and increased purchasing power.

However, some experts warn that the PKR's appreciation could also have negative consequences for Pakistan's exports, as it makes Pakistani goods more expensive for foreign buyers. Additionally, any unforeseen economic shocks or changes in global oil prices could cause the PKR to depreciate again.