The Pakistani rupee recorded a marginal improvement against the US dollar, appreciating 0.06% in the inter-bank market during Monday’s trading session.
At 10:20am, the currency was hovering at 279.05, a gain of Re0.16 against the greenback.
During the previous week, rupee depreciated against the US dollar as it lost Re0.16 or 0.06% in the inter-bank market.
The local unit closed at 279.21, against 279.05 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).
Internationally, the yen rose on Monday in a boost from upbeat Japanese GDP data, while the Australian and New Zealand dollars held broadly steady ahead of policy decisions later in the week.
The US dollar was on the back foot as traders assessed recent weaker-than-expected U.S. economic data which have reignited bets for more Federal Reserve rate cuts this year.
The yen was last 0.27% stronger at 151.94 per US dollar, reversing losses from earlier in the session.
Traders are now pricing in roughly another 35 basis points worth of rate hikes by December.
In the broader market, the US dollar was struggling to recoup its losses after a selloff on the back of Friday’s weak US retail sales data and as investors cheered the delay in the implementation of Donald Trump’s reciprocal tariffs.
Geopolitics also remained in focus with reports that talks aimed at ending the Russian-Ukraine conflict will begin in Saudi Arabia this week, though the participants are not entirely clear.
The US dollar index last stood at 106.79, after tumbling 1.2% last week.
Oil prices, a key indicator of currency parity, fell for a fourth day on Monday on expectations a Russia-Ukraine peace deal could ease sanctions disrupting supply flows and on concerns that global tariff wars could slow economic growth and weaken energy demand.
Brent crude futures slid 20 cents, or 0.2%, to $74.59 a barrel by 0112 GMT. Brent has slumped 3.1% in the past four sessions.
US West Texas Intermediate crude was at $70.51 a barrel, down 23 cents, or 0.3%. WTI is down 3.8% over the past four sessions, and earlier on Monday dropped to as low as $70.12, its lowest since December 30.
This is an intra-day update
American Dollar Exchange Rate