DEFINITION of 'PKR (Pakistani Rupee)'

The PKR is the currency abbreviation or currency symbol for the Pakistani rupee, the currency of Pakistan. The Pakistani rupee is made up of 100 paisa and is often represented by the symbol Rp.

It is often referred to as rupees, rupaya, or rupaye.

BREAKING DOWN 'PKR (Pakistani Rupee)'

When Pakistan became independent from Britain in 1947, the Pakistani rupee replaced the Indian rupee. Initially, they remained using the British notes and simply stamped "Pakistan" over them until printing their own notes the following year. 

The rupee was decimalized in 1961, replacing the 16 annas that the rupee was originally divided into with 100 paisa.

Initially, the rupee was pegged to the British pound. However, in 1982, the government adopted a managed float policy that caused financial mayhem. For the next five years, the rupee fell nearly 40% against the British pound, and the cost of imports surged, crippling the already fragile economy. The currency remained under pressure until the turn of the century when the State bank of Pakistan finally lowered interest rates and purchased U.S. dollars to curb the falling value of the currency. 

Like most emerging market currencies, the Pakistani rupee plunged during the financial crisis, losing over 20% against the U.S. dollar in 2008. The fall of the rupee was exasperated by its large current account deficit. 

Because of the fragility and volatility of its economy, the Pakistani rupee does not have any strong correlations with other currencies, financials or commodities. 

RELATED TERMS
  1. Indian Rupee - INR

    The Indian Rupee (INR) is the currency of India.
  2. Nepalese Rupee - NPR

    The Nepalese rupee - NPR is the currency of Nepal. One rupee ...
  3. SCR (Seychelles Rupee)

    SCR is the abbreviation for the Seychellois rupee, the currency ...
  4. SLR

    SLR is the commonly used currency abbreviation for the Sri Lankan ...
  5. Sterilization

    Sterilization is a form of monetary action in which a central ...
  6. Demonetization

    India's demonetization means that it is stripping a currency ...
Related Articles
  1. Trading

    Crude Oil Has 20% Upside Potential in Rupees

    After pulling back to support levels, crude oil prices in rupees could be poised for 20% gains.
  2. Investing

    Pakistan's Switch from Frontier to Emerging Status

    This frontier market ETF is soaring, but investors should examine the reasons why.
  3. Trading

    NIFTY Small-Cap Stocks to Buy

    While the outlook is mixed for stocks on the NIFTY Smallcap 100 Index, we highlight some names that could be poised for gains.
  4. Investing

    The Top 3 Currency ETFs

    The three top performing currency ETFs in 2017.
  5. Trading

    NIFTY Mid-Cap Stocks to Buy

    After a potential failed breakdown in the NIFTY Mid-Cap 100 Index, some component stocks could be poised for growth.
  6. Investing

    Indian Rupee Tumbles on Rajan’s Exit

    Markets disappointed with Indian RBI governor, Raghuram Rajan's decision to not seek a second term.
  7. Trading

    Counter-Trend Trade in Hindustan Construction

    Although Hindustan Construction shares have been crushed year to date, the reward/risk may finally be skewed in favor of the bulls.
  8. Investing

    Google Vs. Amazon in Indian Smart-Speaker Showdown

    Tech titans seek a foothold in India, an important market for AI-driven virtual assistants.
  9. Insights

    The Regulations That Govern Banking in India

    Through these regulations, the Reserve Bank of India steers India's banking sector away from risk and toward its goals for India's economy and society.
  10. Trading

    Tata Power Confirms Head and Shoulders Top

    Tata Power shares confirmed a long-term topping pattern and could be vulnerable to approximately 35% downside.
RELATED FAQS
  1. Who decides when to print money in India?

    Find out the role of the Reserve Bank of India (RBI), and the amount of authority given to the government to issue currency ... Read Answer >>
  2. What is the name of the currency in New Zealand?

    The New Zealand currency is known as the New Zealand dollar. The currency was decimalized in 1967, and divided into 100 parts ... Read Answer >>
  3. What currency is affected by the interest rate decisions of the Bank of England (BoE)? ...

    The Bank of England (BoE) is responsible for the interest rate decisions that affect the economy of Great Britain. As with ... Read Answer >>
  4. How did George Soros break the Bank of England?

    George Soros pocketed $1 billion by betting against the British pound, cementing his reputation as the premier currency speculator ... Read Answer >>
Trading Center