PKR's REER Index edges up to 107.9 in August

Mettis Link News reported that Pakistan's Real Effective Exchange Rate climbed to 107.92 in August 2026 from 107.89 in July, a marginal month-on-month gain of 0.02%. On a yearly basis the reading is 7.71% above the 100.20 recorded in August 2025. The gauge weighs domestic price levels against those of major trade partners after adjusting for inflation.

The Nominal Effective Exchange Rate, which tracks the rupee against a basket of currencies, eased to 38.02 in August from 38.32 in July, a 0.79% monthly decline. It remained 0.46% higher than the 37.84 level of August 2025. Meanwhile the rupee finished August at Rs277.4728 per USD, firmer by 0.12% from the July rate of Rs277.8036 and 1.53% stronger than the Rs281.7728 of a year earlier.

A rising REER signals that the rupee has strengthened in real terms, which makes exports dearer and imports cheaper and weakens trade competitiveness. The report also stresses that 100 is a reference point set at the 2010 average rather than an equilibrium value, so moves away from it only reflect changes against that base.