KARACHI- May 5, 2025: The latest foreign exchange market update has witnessed the Canadian Dollar (CAD) appreciate moderately against the Pakistani Rupee (PKR). According to the currency-dealing banks, the CAD has been quoted at 203.65 PKR against the previous rate of 202.84 PKR.
Though the shift is minute, it shows that the trend keeps happening in the movement of the forex market as a result of tighten economic circumstances of both the participating nations.
1 Canadian Dollar = 203.65 PKR
Determinants of CAD-PKR Exchange Rate
The values of currencies are based on a combination of market demand, geopolitical circumstances, and economic indicators. The determinants of the CAD-PKR exchange rate include:
Interest Rates: When Canada’s central bank increases or keeps interest rates steady, more CAD might be purchased by foreign investors, strengthening its value.
Trade Balance: Pakistan’s imports and trade deficit weaken the PKR, while Canada’s exports (particularly oil) stabilize the CAD.
Inflation & Economic Stability: Low inflation in Canada strengthens the CAD, while inflation in Pakistan erodes the PKR.
Remittances & Foreign Reserves: Remittances sent home by Pakistani expats increase PKR liquidity, but limited foreign reserves might restrict currency stability.
DOLLAR RATE TODAY IN PAKISTAN- LIVE
Impact on Stakeholders
1. Pakistani Expats in Canada
Weaker Canadian Dollar would result in foreign workers receiving less PKR for remittances, hurting families back home. Yet, if the PKR continues weakening, the cost of living in Pakistan might increase.
2. Importers & Exporters
Pakistani companies bringing in Canadian merchandise (like machinery or pulses) will have to pay more. On the other hand, companies exporting textiles or agri-products to Canada might be helped by a favorable exchange rate.
3. Investors & Forex Traders
Short-term speculators might make money on tiny movements, but long-term investors watch for economic policies, oil prices, and political stability before they take large positions.
Financial experts are of the view that the Canadian Dollar can continue to enjoy a premium over the PKR if global oil prices are robust (Canada is a significant exporter of oil) and the economic issues of Pakistan continue to exist. The foreign exchange reserves of the State Bank of Pakistan and the country’s capability to handle external debt will also determine the stabilization of the PKR.
About the Currencies
Canadian Dollar (CAD): The CAD is a commodity-backed, stable currency influenced significantly by oil and natural resources, issued by the Bank of Canada.
Pakistani Rupee (PKR): The PKR is managed by the State Bank of Pakistan and is volatile to inflation, political events, and foreign exchange reserves.
Although the recent rise in the CAD-PKR rate is small, it indicates the larger economic trends between the two countries. Remittance-dependent households in Pakistan might appreciate the stronger CAD, but firms and policymakers need to manage currency risks tactfully. Watchers will monitor central bank policy and international market trends for guidance on future direction on the exchange rate.
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