Pakistani rupee ended the week by gaining marginal 0.32% against the US Dollar, before the currency fell to its lowest low during the early week sessions.

The rupee started at 184 against the US dollar but fell three times to exceed 189/USD in the interbank market. Due to the growing political uncertainty in the country, The reduction of foreign exchange reserves, The lack of an effective government and political development has led to uncertainty and speculation.

However, this became clear on Thursday after the central bank raised interest rates by 250 points and the Supreme Court ruled a vote of no confidence before Saturday.

The move helped the rupee to rise by 1.9 percent on Friday, pushing the currency back to 184.68.

Previously, Governor SBP had hinted that onus of macroeconomic stability does rely on Currency only and Monetary Policy will be adjusted to share the burden from PKR.

Market had long awaited the increase in Interest Rate which was put on hold since December-2021, as SBP look forward to curtailing Inflation and Current Account Deficit.

With the sudden increase of 250bps in SBP Policy rate, market expect Rupee to trade range bound and remain stable in near term, barring any significant repayments.

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