Pakistan’s Real Effective Exchange Rate (REER) rose to 101.73 in September 2025, up from 100.09 in August, according to the latest data.
This marks a month-on-month increase of 1.64%.
Since the start of the current fiscal year (FY26), the REER has climbed 3.77%. However, on a calendar year-to-date basis (CY25TD), the index is still down 1.87%.
Analysts say the uptick in REER reflects a strengthening of the rupee against a basket of trading partner currencies, which could impact export competitiveness if the trend continues.
The REER measures the country’s currency value against a basket of trading partners, adjusted for inflation. A level above 100 generally indicates the currency may be overvalued, while a level below suggests undervaluation.
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