Kuwait City/Karachi, June 17, 2025 – The Kuwaiti Dinar (KWD) has reached a new high against the Pakistani Rupee (PKR), trading at 925.95 PKR today, up from 924.24 PKR yesterday, according to open market sources.
This marks a steady ascent from 919.67 PKR on June 10 and 922.06 PKR on June 13, underscoring the Dinar’s consistent upward trajectory throughout June. The rise highlights Kuwait’s economic strength and has significant implications for trade and remittances between the two nations.
Currency Rates in Pakistan Today
Valuation Dynamics
The exchange rate between the KWD and PKR is driven by a combination of market forces and macroeconomic indicators. The Kuwaiti Dinar, one of the world’s strongest currencies, is loosely pegged to a basket of currencies, including the US Dollar, ensuring relative stability. This peg, managed by the Central Bank of Kuwait, is supported by Kuwait’s vast oil wealth and substantial foreign exchange reserves. In contrast, the Pakistani Rupee operates under a managed float system, with its value determined by supply and demand in the foreign exchange market, subject to periodic interventions by the State Bank of Pakistan to curb volatility.
The recent appreciation of the KWD against the PKR reflects several key dynamics. Kuwait’s robust economic indicators, including high oil prices and fiscal surpluses, have bolstered the Dinar’s value. Global oil demand remains strong, and Kuwait, as a major oil exporter, benefits from elevated prices, which directly support its currency. Additionally, the US Dollar’s strength in global markets, to which the KWD is partially tied, has contributed to the Dinar’s rise. Meanwhile, Pakistan faces economic challenges, including high inflation, trade deficits, and foreign debt obligations, which exert downward pressure on the PKR. The PKR’s 30-day high of 923.45 and low of 912.10 against the USD further illustrate its volatility, indirectly impacting the KWD/PKR rate.
Reasons Behind the Rise
Several factors underpin the Kuwaiti Dinar’s consistent climb against the PKR. First, Kuwait’s oil-driven economy continues to thrive, with stable fiscal policies and low unemployment reinforcing the Dinar’s strength. The Central Bank of Kuwait’s prudent management of the currency peg ensures minimal fluctuations, making the KWD a reliable store of value. Second, remittances from over 200,000 Pakistani expatriates in Kuwait, estimated at $1.8 billion annually, increase demand for the Dinar, further supporting its value. For instance, 1,000 KWD, worth 919,670 PKR on June 10, now fetches 925,950 PKR, a gain of 6,280 PKR in just one week.
On the other hand, Pakistan’s economic struggles contribute to the PKR’s relative weakness. High inflation and a widening trade deficit have strained the Rupee, while efforts to stabilize foreign exchange reserves have had limited success. The State Bank of Pakistan’s interventions help mitigate sharp declines, but the PKR remains vulnerable to global market forces and domestic economic pressures. The stronger Dinar also raises the cost of Kuwaiti exports, such as petroleum products, for Pakistani businesses, potentially fueling domestic price increases in Pakistan.
For Pakistani expatriates in Kuwait, the rising exchange rate enhances the value of their remittances in PKR terms, boosting household incomes and supporting Pakistan’s foreign exchange reserves. However, it also increases the cost of importing goods or services from Pakistan, posing challenges for expatriates’ budgeting decisions.
Currency Profiles
The Kuwaiti Dinar (KWD), introduced in 1961, is Kuwait’s official currency, subdivided into 1,000 fils and symbolized as KD or د.ك. Issued by the Central Bank of Kuwait, it is the world’s highest-valued currency, backed by Kuwait’s oil-driven economy, substantial foreign exchange reserves, and stable fiscal policies. Its peg to a basket of currencies ensures consistent valuation, making it a key player in international finance.
The Pakistani Rupee (PKR), established in 1947, is Pakistan’s official currency, symbolized as ₨ and subdivided into 100 paisa. Regulated by the State Bank of Pakistan, the PKR operates under a managed float, with its value influenced by domestic factors like inflation and trade balances, as well as global market conditions. Its volatility reflects Pakistan’s economic challenges, contrasting with the KWD’s stability.
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