Dubai, June 19, 2025 – The UAE Dirham (AED) strengthened further against the Pakistani Rupee (PKR) today, reaching Rs77.21 in the forex market, up from Rs77.14 yesterday and Rs77.04 the day before.
This marks a steady climb from earlier this week, with the AED rising from Rs76.44 to Rs76.96 over recent days, reflecting a stabilizing upward trend, according to forex market data.
1 AED= 77.21 PKR
Currency Valuation Mechanism
The exchange rate between the UAE Dirham and Pakistani Rupee is determined by supply and demand dynamics in the foreign exchange market. The UAE Dirham is pegged to the US Dollar at a fixed rate of 3.6725 AED per USD, meaning its value fluctuates in tandem with the dollar. The Pakistani Rupee, however, operates under a managed float system, where the State Bank of Pakistan occasionally intervenes to stabilize its value. Factors such as trade balances, remittances, foreign investment, and global oil prices influence the AED-PKR rate. Strong remittance inflows from Pakistani workers in the UAE and stable oil prices have recently bolstered demand for the Dirham, contributing to its rise.
Economic Impact
The strengthening of the AED against the PKR has mixed implications. For Pakistani workers in the UAE, this trend enhances the value of remittances sent home, boosting household incomes and supporting Pakistan’s foreign exchange reserves. However, it increases the cost of imports from the UAE, such as petroleum products and consumer goods, potentially fueling inflation in Pakistan. For UAE-based businesses exporting to Pakistan, the stronger Dirham makes their goods more expensive, which could dampen demand. Conversely, Pakistani exporters may find their products more competitive in the UAE market.
Currency Overview
The UAE Dirham (AED), introduced in 1973, is the official currency of the United Arab Emirates, replacing the Qatar-Dubai Riyal. It is abbreviated with “Dh” or “AED” and is subdivided into 100 fils. The Dirham’s stability is underpinned by the UAE’s robust economy, driven by oil exports, tourism, and trade.
The Pakistani Rupee (PKR), introduced in 1948, is the official currency of Pakistan, replacing the Indian Rupee. Abbreviated with “Rs” or “PKR,” it is subdivided into 100 paisa. The Rupee’s value is influenced by Pakistan’s economic performance, including exports, remittances, and foreign aid.
As the AED continues its upward trajectory, market analysts are monitoring global economic trends and regional trade dynamics to assess whether this trend will persist.
