KARACHI- April 29, 2025: The Canadian Dollar is currently at 202.84 Pakistani Rupees (PKR) today, down from last week’s rate of 203.16 PKR. This fluctuation reflects a slight appreciation of the Pakistani Rupee against the Canadian Dollar over the past few days.
Valuation Process
The exchange rate, or the relative value of one currency to another, is set mainly in the foreign exchange (Forex) market. This market is open 24/7, and the exchange rates fluctuate constantly. There are a number of factors that affect these rates:
Interest Rates: Higher interest rates in a nation tend to make the currency of the nation more attractive to foreign investors, increasing demand and hence its potential to appreciate.
Inflation Rates: Economies that witness lower inflation rates possess a stronger currency because the purchasing power is relatively intact.
Economic Growth: Strong economic growth will lead to more demand for a country’s currency.
Political Stability: Political uncertainty or instability can negatively impact the value of a currency.
Trade Balance: A country that enjoys a trade surplus (exports more than imports) may see more demand for its currency.
Market Speculation: Foreign exchange traders buy and sell currencies based on their expectation of future price movement, thus generating short-term volatility.
Central Bank Policies: The State Bank of Pakistan and the Bank of Canada are able to manage exchange rates by monetary policy.
In this particular instance, the marginal decrease in the CAD/PKR exchange rate can be explained by a combination of these, possibly including changes in the economic sentiment of Canada or Pakistan, or changes in sentiment within the international market.
Impact:
The change in the exchange rate can have several implications:
For Pakistan: A stronger Rupee (as reflected in the decline in CAD/PKR) will make Pakistani imports from Canada, say some commodities or manufactured items, cheaper. This will be a welcome news to Pakistani businesses and consumers taking advantage of imports from Canada. It will, however, increase the cost of Pakistani exports to Canada, which could reduce the Pakistani exporter’s competitiveness.
For Canada: A weaker Canadian Dollar against the Pakistani Rupee would make Canadian goods more competitive in the Pakistani market. But it would also increase the cost of Pakistani imports for Canadian businesses and consumers.
Remittances: Remittances are transferred by a large number of Canadians to their family in Pakistan. An appreciating PKR means that such remittances, if converted, would be of greater value in Pakistani Rupees.
Investment: Capital flow from one country to another can be impacted by exchange rate changes.
The minor recent fall in the exchange rate of the CAD/PKR is a sign of the fluidity of currencies. While insignificant, one cannot help but anticipate such movements, as they influence trade, investments, and each country’s respective economy. A reminder that an exchange rate operates as a factor of several nuanced and interrelating variables comes to mind.
About the Currencies
The Canadian Dollar (CAD) is the official currency of Canada, a big world economy with a robust financial system and natural resources.
The Pakistani Rupee (PKR) is the currency of Pakistan, a developing nation in South Asia with a big population and a developing economy. Exchange rates between the two currencies are influenced by a number of economic factors in both nations and the world.
DOLLAR RATE TODAY IN PAKISTAN- LIVE
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