The Pakistani rupee recorded marginal improvement against the US dollar, appreciating 0.05% in the inter-bank market during the opening hours of trading on Thursday.
At 10am, the currency was hovering at 280.52, a gain of Re0.14 against the greenback.
On Wednesday, the local unit closed at 280.66.
Internationally, the US dollar was riding high on Thursday after notching its sharpest gain in six weeks as Fed minutes made a December US rate cut seem less likely, while the yen tumbled on bets that Japan would not immediately step in to stem its weakness.
The yen fell 1% to a 10-month low of 157.18 per dollar overnight in a slide that began after Finance Minister Satsuki Katayama said there was no specific discussion on foreign exchange at a meeting with Bank of Japan Governor Kazuo Ueda.
The yen hovered around 157 to the dollar in morning trade, near where it began the year, and traders now figure Japanese authorities may step in somewhere around the 160 mark, or if there are any more sudden moves.
The euro notched about a 0.4% fall overnight and was steady in early trade on Thursday at $1.1528. Sterling fell about 0.7% to a two-week low of $1.3043.
In the US, expectations for a December cut have fallen below 25%, after being priced as a near-certainty a month ago.
The dollar index rose 0.5% overnight, climbing through its 200-day moving average, and was last up 0.1% at 100.17.
Oil prices, a key indicator of currency parity, edged higher on Thursday, recovering from losses in the previous session, as markets assessed the latest US proposals to end the war in Ukraine and prepared for a US deadline to cease operations with two major Russian oil firms.
Brent crude futures climbed 21 cents, or 0.33%, to $63.72 a barrel at 0142 GMT, while US West Texas Intermediate crude futures rose 24 cents, or 0.40%, to $59.68.
Both benchmarks rebounded after falling nearly 2% during Wednesday’s session.
This is an intra-day update
American Dollar Exchange Rate