Pakistan’s Real Effective Exchange Rate (REER) index appreciated to 104.8 in November 2025, up from 103.9 in October 2025.
According to Topline Securities, the index has exceeded its 10-year average of 103.2, indicating that the rupee has strengthened beyond its historical norm.
A REER reading above 100 suggests that the home currency is overvalued relative to the currencies of peer countries.
Economists note that a rising REER can reduce export competitiveness while making imports relatively cheaper, potentially affecting the country’s trade balance if the trend persists.
Despite the current strength in the REER, market expectations point to some adjustment ahead. Analysts expect the Pakistani rupee to average around Rs. 285 per US dollar in FY26.
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