Since the currency crisis of 1990s, economists have had a renewed interest in the fluctuation of exchange rates. For decades exchange rates remained the centre of macro economic debates in the developing markets. In many countries it was used for controlling inflation while in other countries like Latin America it was used for imposing tax on export sector. Increase volatility is the result of more violent shocks. In this book an effort is being made to analyse the impact of some major factors like Exports, FDIs and Debt servicing on exchange rate volitility in Pakistan. An accurate analysis of these factors will eventually help shape better economic policies for Pakistan in future.