Karachi/Sydney, May 24, 2025 – The Australian Dollar (AUD) remained steady against the Pakistani Rupee (PKR) today, trading at 180.17 PKR in the open market, based on data from currency exchange platforms.
This consistent performance illustrates a balance of economic forces affecting both currencies, with market participants carefully observing global and regional trends.
Valuation Mechanism: Supply, Demand, and Economic Drivers
The AUD/PKR exchange rate is mainly influenced by supply and demand interactions within the foreign exchange market. Significant factors impacting this rate include interest rate differences, commodity prices, and economic indicators. Australia’s economy, closely linked to commodity exports such as iron ore, gains from global demand, which bolsters the AUD’s value. Nevertheless, recent trade disputes with China and sluggish construction activity have introduced pricing uncertainties, potentially limiting AUD appreciation. On the other hand, the PKR is under pressure due to Pakistan’s low foreign exchange reserves, high inflation, and dependence on IMF assistance, which can lead to fluctuations. The interest rate strategies of the Reserve Bank of Australia (RBA) and the State Bank of Pakistan further influence the yield gap, affecting investor interest in each currency.
Impact on Trade and Investment
The Australian Dollar’s stability at 180.17 PKR creates a predictable environment for bilateral trade and remittances, particularly benefiting the 125,000 Pakistani expatriates residing in Australia. Consistent exchange rates enable smoother transactions for businesses involved in Australia-Pakistan trade, which, although limited, is on the rise. However, a potential rate cut by the RBA in 2025 might weaken the AUD, possibly driving the AUD/PKR rate up to 181, affecting the cost of Australian imports for Pakistan. A stable PKR against the AUD fosters confidence among Pakistani investors in cross-border investments, especially in Australia’s commodity-oriented markets. Conversely, the PKR’s historical instability, influenced by economic difficulties, could present risks if external pressures such as delayed IMF loans escalate.
Currency Profiles: AUD and PKR
The Australian Dollar (AUD) serves as Australia’s official currency, recognized for its strength due to the nation’s extensive commodity exports and stable economic policies. Overseen by the Reserve Bank of Australia, the AUD is a currency traded globally, often affected by shifts in commodity prices and expectations regarding interest rates.
The Pakistani Rupee (PKR) is Pakistan’s official currency, issued by the State Bank of Pakistan and divided into 100 paise (though paise coins are no longer in circulation). The PKR’s value is linked to the country’s economic development, trade balance, and foreign reserves; ongoing issues such as inflation and geopolitical uncertainties contribute to its volatility.
 remained steady against the Pakistani Rupee (PKR) today){kind=link}