The UAE Dirham strengthened against the Pakistani Rupee on Thursday, November 27, 2025, reaching PKR 76.37, a new record low for the year. This milestone offers significant benefits for cross-border transactions as November comes to a close.
Today’s rate of 76.37 PKR surpasses the previous record low of 76.3583 PKR set on November 29, according to market data. While some sources reported rates of 76.70 and 76.93 PKR, the mid-market rate reflects the strongest Rupee position this year.
Over the past 90 days, the Dirham has slightly weakened by 0.02% against the Rupee, falling from 76.7189 to 76.7013 PKR per Dirham. Analysts say this reflects Pakistan’s currency resilience amid changing economic dynamics with the UAE.
Currency Overview:
- UAE Dirham (AED): The UAE central bank has pegged the Dirham to the US Dollar at 3.6725 AED/USD since 1997, providing stability. Over 1.5 million Pakistanis work in the UAE, sending substantial remittances that support the Rupee.
- Pakistani Rupee (PKR): The Rupee follows a managed float system, adjusting to trade balances, reserves, inflation, and remittance inflows. Today’s record strength highlights effective monetary policies and interventions by the State Bank of Pakistan.
Factors Driving the Exchange Rate:
- Inflation Differences: Pakistan’s higher inflation compared to near-zero inflation in the UAE pressures the Rupee, prompting State Bank measures such as interest rate adjustments.
- Energy Prices: Rising global oil prices benefit the UAE as an exporter but strain Pakistan as an importer.
- Remittances: The UAE, Pakistan’s second-largest remittance source after Saudi Arabia, provides steady inflows that strengthen currency reserves.
- Trade Deficits: Pakistan imports fuel, machinery, and consumer goods from the UAE, increasing Dirham demand, balanced by remittance inflows.
The new record highlights the Rupee’s resilience and signals a favorable period for cross-border trade and remittances.
