The Saudi Riyal (SAR) recorded a slight decline against the Pakistani Rupee (PKR) in the open market, standing at Rs74.70 on Thursday, March 20, 2025.
The selling rate also dropped, with exchange companies offering 1 SAR for Rs75.10, according to the Forex Association of Pakistan.
The Saudi Riyal is the official currency of Saudi Arabia, abbreviated as SAR or SR, and one Riyal is subdivided into 100 halalas. Currency exchange rates depend on various economic and market dynamics, determining the strength of a currency relative to others.
One of the key factors influencing exchange rates is supply and demand. If demand for a currency rises, its value increases, while a decline in demand weakens it. The trends in the foreign exchange (Forex) market also play a crucial role, as it is the largest and most liquid financial market in the world.
Currency prices fluctuate based on trading volume and market sentiment. Inflation rates also impact currency strength, with lower inflation typically leading to stronger purchasing power, while higher inflation puts pressure on a currency. Other influencing factors include political stability, economic performance, trade balance, and central bank policies.
