The Pakistani rupee saw marginal improvement against the US dollar, appreciating 0.03% during the opening hours of trading in the inter-bank market on Thursday.
At 10:45am, the rupee was hovering at 279.90, a gain of Re0.07 against the greenback.
On Wednesday, the rupee had closed at 279.97.
Internationally, the US dollar rebounded slightly on Thursday thanks to a rise in US Treasury yields, though currencies traded in tight ranges as investors struggled to determine the impact of an escalating global trade war on US inflation and growth.
US President Donald Trump on Wednesday threatened further tariffs on European Union goods, as major US trading partners said they would retaliate for trade barriers already erected by him.
A rise in global trade tensions and worries over US recession risks have rattled global markets and sparked huge volatility in the foreign exchange market, as traders seesaw between relief and angst over Trump’s whipsawing policy changes.
Markets were a tad calmer in the early Asian session on Thursday as investors got a break from the flurry of headlines about US trade policy.
The dollar rose 0.05% against the yen to 148.31, recovering some of its losses from earlier in the week when it fell to a five-month low against the Japanese currency, as fears of an economic downturn in the US sparked a rush to the Japanese currency as a safe haven.
Data released on Wednesday showed US inflation rose slightly less than expected in February, but the relief it offered could be temporary as the data did not fully capture the cascade of Trump’s tariffs.
Oil prices, a key indicator of currency parity, eased on Thursday after surging the day before as worries about the impact of intensifying tariff wars on global economic growth and energy demand outweighed the positive sentiment from a larger-than-expected draw in US gasoline stocks.
Brent futures fell 7 cents, or 0.1%, to $70.88 a barrel by 0107 GMT, while US West Texas Intermediate crude futures shed 11 cents, or 0.2%, to $67.57 a barrel.
Both benchmarks rallied about 2% on Wednesday as US government data showed tighter-than-expected oil and fuel inventories.
This is an intra-day update
American Dollar Exchange Rate