The Canadian Dollar is trading at 125.82 against the Pakistani Rupee this morning, up 0.08% with a YTD change of 0.49%. The currency pair’s open rate was 125.92, up from the previous close of 125.72. CAD/PKR day range is anticipated to stay within the higher end of the 125.00 level, the 52-week range is forecasted to stay between 109.26 and 127.73.
After dropping from the 126.00 level to 124.00 at the beginning of February, CAD/PKR has been recovering well, moving back towards the 127.00 level that was last reached at the end of January. This can be attributed to rising oil prices and the success in distributing the COVID-19 vaccine in Canada.
CAD/PKR has currently reached the highest exchange rate seen in over five years. In March 2017 the pair was at the 76.00 level and has been increasing ever since, jumping to 97.00 in 2018, then again increasing dramatically to the 124.00 level in 2019. At the start of the pandemic, CAD/PKR exchange rate fell to the 114.00 range but quickly recovered to the high 127.00 range in July 2020.
CAD has gained momentum against a broad basket of currencies over the past few weeks but there is concern that long-term growth will not be sustained due to extended lockdown measures and threats of inflation.
The Financial Post reported that the Bank of Canada (BOC) said: “a stronger loonie has re-emerged as a risk to its outlook for inflation, warning that the currency’s recent rise could weaken the competitiveness of the country’s good and services.”
The chief economist of CIBC Capital Markets, Avery Shenfeld, explained that “vaccines are riding to the rescue of the Bank of Canada’s economic outlook” but with the ongoing pandemic and emerging variant strains of the coronavirus, the Canadian dollar is “looking a bit too strong and inflation too low for its liking.”
By Surina Nath