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. SCR (Seychelles Rupee)

    The currency abbreviation for the Seychelles rupee (SCR), the ...
  3. Bhutan Ngultrum (BTN)

    The currency of Bhutan. The Bhutan Ngultrum, abbreviated as BTN ...
  4. BTN (Bhutanese Ngultrum)

    The currency abbreviation for the Bhutanese ngultrum, the currency ...
  5. IDR

    The currency abbreviation or the currency symbol for the Indonesian ...
  6. IQD (Iraqi Dinar)

    The currency abbreviation or currency symbol for the Iraqi dinar ...
Related Articles
  1. Investing

    Pakistan's Switch from Frontier to Emerging Status

    This frontier market ETF is soaring, but investors should examine the reasons why.
  2. Investing

    The Top 3 Currency ETFs

    The three top performing currency ETFs in 2017.
  3. Insights

    India Takes 500 and 1000 Rupee Notes Out of Circulation to Fight `Black Money'

    Prime Minister Modi says the plan is aimed at ending the underground economy and fighting counterfeiting in a nation where 1% of the population pays taxes
  4. Investing

    Google Vs. Amazon in Indian Smart-Speaker Showdown

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

    Indian Banking Regulations -- What You Didn't Know

    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.
  6. Small Business

    Top 10 Indian Entrepreneurs

    India has produced a number of billionaire businessmen and women.
  7. Trading

    Forex Exotic Currency Trading: Risks & Rewards

    Exotic currencies are off the beaten path and are not for novices, but experienced forex investors might find the high risk-reward potential exciting.
  8. Investing

    Indians Use Crowdsourced Information to Find ATMs With Cash

    Indians are on a treasure hunt where the treasure is their own hard-earned money.
  9. Trading

    Top 5 Hardest-Hit Currencies

    The value of a country's currency is dependent on many factors that will cause it to fluctuate, relative to other world currencies.
  10. Managing Wealth

    Are You in the Top One Percent of the World?

    If you live in an industrialized country, cracking the top 1% of income earners isn't as difficult as you might think.
RELATED FAQS
  1. How are international exchange rates set?

    Knowing the value of your home currency in relation to different foreign currencies helps investors to analyze investments ... Read Answer >>
  2. How can I trade in cross currency pairs if my forex account is denominated in U.S. ...

    The forex market allows individuals to trade on nearly all of the currencies in the world. However, most of the trading is ... Read Answer >>
  3. Why is the U.S. dollar shown on the top of some currency pairs and on the bottom ...

    All currencies are traded in pairs. The first currency in the pair is called the base currency while the second is called ... Read Answer >>
  4. Why the British Pound Is Stronger Than the U.S. Dollar

    Learn why the British pound is stronger than the U.S. dollar, despite the U.S. economy being larger than that of Britain ... Read Answer >>
Hot Definitions
  1. Fibonacci Retracement

    A term used in technical analysis that refers to areas of support (price stops going lower) or resistance (price stops going ...
  2. Ethereum

    Ethereum is a decentralized software platform that enables SmartContracts and Distributed Applications (ĐApps) to be built ...
  3. Cryptocurrency

    A digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of ...
  4. Financial Industry Regulatory Authority - FINRA

    A regulatory body created after the merger of the National Association of Securities Dealers and the New York Stock Exchange's ...
  5. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs are often issued by companies seeking the capital to expand ...
  6. Cost of Goods Sold - COGS

    Cost of goods sold (COGS) is the direct costs attributable to the production of the goods sold in a company.
Trading Center