Islamabad, Mar 20, 2025: The Saudi Riyal (SAR) experienced a minor dip against the Pakistani Rupee (PKR) in the open market, settling at Rs74.70 on Thursday, March 20, 2025.
Meanwhile, the selling rate also declined, with exchange companies offering 1 SAR for Rs75.10, as reported by the Forex Association of Pakistan.
Understanding the Saudi Riyal and Its Exchange Rate
The Saudi Riyal (SAR) is the official currency of Saudi Arabia, commonly denoted as SAR or SR. Each Riyal is further divided into 100 halalas.
Exchange rates fluctuate based on several market-driven factors, impacting the currency’s strength relative to others.
Key Factors Affecting Exchange Rates
Several economic and financial factors influence currency exchange rates, including:
- Supply and Demand: When demand for a currency increases, its value rises, while a drop in demand causes depreciation.
- Forex Market Trends: The foreign exchange (Forex) market is the world’s largest financial market, where trading volumes and investor sentiment determine currency prices.
- Inflation Rates: A lower inflation rate strengthens a currency’s purchasing power, whereas high inflation erodes its value.
- Political and Economic Stability: Countries with strong economic policies and stable governance tend to have stronger currencies.
- Trade Balance: A positive trade balance (more exports than imports) boosts a nation’s currency, whereas a trade deficit weakens it.
- Central Bank Policies: Monetary policies, interest rates, and foreign exchange reserves controlled by a country’s central bank significantly impact currency value.
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Market Outlook
Fluctuations in SAR to PKR rates are expected to continue based on global economic trends and Pakistan’s financial conditions.
