The Pakistani rupee strengthened against the US dollar, appreciating 0.1% during the opening hours of trading in the inter-bank market on Friday.
At 10am, the local currency was hovering at 280.75, up by Re0.28 against the US dollar.
The local unit closed at 281.03 on Thursday.
Globally, the US dollar was steady on Friday, poised to eke out a small weekly gain against major rivals as investors braced for delayed inflation data unlikely to deter the Federal Reserve from lowering interest rates next week.
The Japanese yen was flat at 152.58 per US dollar after weakening in the previous session as data showed Japan’s core consumer prices stayed above the central bank’s 2% target, keeping alive expectations of a near-term rate hike.
Beyond central bank meetings in Japan and the US next week, investor focus is also on the looming meeting between US President Donald Trump and Chinese President Xi Jinping, leaving the currency market fairly subdued on the day.
The Trump-Xi meeting next week in South Korea has spurred some expectations of a resolution to the escalating trade war between the world’s top two economies.
Investors are watching out for the US Consumer Price Index (CPI) for September due later on Friday, expecting a 0.4% increase for the headline number and a 0.3% rise in the core figure month-on-month.
While analysts do not expect the data to hinder the Fed’s path to cut rates next week by 25 basis points, it could provide cues on what the central bank might do in its December meeting.
Traders are almost fully pricing in a rate cut next week and another one at the December meeting.
Oil prices, a key indicator of currency parity, dipped in early trade on Friday, trimming part of the previous day’s surge but remaining on track for a weekly gain, as fresh US sanctions on Russia’s two biggest oil companies over the war in Ukraine fuelled supply concerns.
Brent crude futures fell 54 cents, or 0.8%, to $65.45 at 0200 GMT.
US West Texas Intermediate crude futures were down 51 cents, or 0.8%, at $61.28.
Both benchmarks jumped more than 5% on Thursday and were set for about a 7% weekly gain, the biggest since mid-June.
This is an intra-day update
American Dollar Exchange Rate