Kuwait City, July 1, 2025 — The Kuwaiti Dinar (KWD), one of the world’s strongest currencies, bolstered by Kuwait’s oil-rich economy, has reached a new high of 928.56 Pakistani Rupee (PKR) today, as reported by major currency exchanges at 5:37 PM PST.
The Pakistani Rupee, Pakistan’s official currency, continues to face pressures from domestic economic challenges, highlighting the Kuwaiti Dinar’s relative strength.
Today’s rate marks a slight increase from the stable 928.44 PKR recorded on June 28 and reflects a consistent upward trend over the past month. On June 18, the KWD traded at 925.45 PKR, climbing from 922.06 PKR on June 13 and 919.67 PKR on June 10. This represents a gain of 8.89 PKR, or approximately 0.97%, over the 21-day period from June 10 to July 1. The steady appreciation underscores the dinar’s resilience, driven by Kuwait’s robust fiscal policies and oil export revenues, which constitute nearly 90% of its GDP.
Valuation Mechanism
The KWD’s value is anchored by Kuwait’s managed float exchange rate, pegged to a basket of currencies, primarily the US dollar, due to oil exports priced in USD. The Central Bank of Kuwait adjusts the dinar based on global oil prices and economic indicators of key trading partners, ensuring stability. Conversely, the PKR operates under a managed float, with the State Bank of Pakistan intervening to counter inflation, trade deficits, and external debt pressures, which contribute to its relative weakening against the KWD.
Economic Implications
The Kuwaiti Dinar’s rise impacts bilateral economic ties. Pakistani expatriates in Kuwait, a significant portion of the workforce, benefit from higher remittance values, supporting families in Pakistan. However, Pakistani importers face increased costs for goods priced in KWD, such as petroleum and machinery. Kuwaiti businesses and investors, meanwhile, enjoy greater purchasing power in Pakistan, particularly in textiles and agriculture.
Analysts attribute the Kuwaiti Dinar’s strength to stable oil prices and Kuwait’s low inflation, contrasted with Pakistan’s challenges, including high inflation and external debt obligations. “The dinar’s steady climb reflects Kuwait’s economic stability, while the PKR’s struggles highlight Pakistan’s need for fiscal reforms,” noted a currency strategist.
Outlook
Looking ahead, the Kuwaiti Dinar is expected to maintain its strength unless global oil markets face significant disruptions. For Pakistan, stabilizing the PKR will require bolstering foreign reserves and addressing structural economic issues. Businesses engaged in Kuwait-Pakistan trade are advised to use currency hedging to mitigate risks.
The Kuwaiti Dinar’s consistent gains against Pakistani Rupee throughout June and into July highlight the contrasting economic trajectories of Kuwait’s oil-backed stability and Pakistan’s ongoing fiscal challenges, making the dinar’s performance a key focus for regional markets.
DOLLAR RATE TODAY IN PAKISTAN- LIVE
