Pakistan's monthly trade balance (exports minus imports) against the Rupee's exchange rate.
Pakistan's monthly trade balance (exports minus imports) against the Rupee's exchange rate.
▸Trade Balance fell 51.6% over the selected period — from -2.19B USD to -3.32B USD.
▸USD/PKR rose 0.1% over the selected period — from 278PKR to 279PKR.
▸Over this period, Trade Balance and USD/PKR showed a moderate relationship, moving in opposite directions (correlation coefficient: -0.42).
Sources:: SBP EasyData
A widening trade deficit increases demand for foreign currency to pay for imports, which has historically coincided with periods of faster Rupee depreciation.
Does a wider trade deficit cause the Rupee to fall?
It's a contributing pressure, not the sole cause — the exchange rate also reflects reserve levels, remittances, capital flows, and market expectations.
Related Comparisons
Related Indicators