Rupee makes gains against the dollar as uncertainty subsides – Newspaper

KARACHI: The rupee made massive gains on Friday, skyrocketing 1.9 per cent against the US dollar in the interbank market — a development that was largely attributed to the Supreme Court’s ruling to restore the National Assembly and the central bank’s decision to increase the policy rate by 2.5pc a day earlier.

According to data released by the State Bank, the rupee closed at 184.68 to the dollar on Friday, recovering from the previous day’s close of 188.18.

Market experts and currency dealers beli­eve that the Supreme Court’s decision has eroded the uncertainty that kept the speculative market under grip for a long time. However, they say the exchange rate remains vulnerable to many factors, including weak foreign exchange reserves and the economic policies set by the new government.

“We believe a key sentiment driver for the market will be immediate policy formation by the new government,” said Tahir Abbas, head of research at…

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