The Pakistani rupee strengthened against the US dollar, appreciating 0.08% during the opening minutes of trading in the inter-bank market on Friday.
At 10am, the local currency was hovering at 280.15, a gain of Re0.21 against the greenback.
On Thursday, the local unit closed at 280.36.
Internationally, the US dollar headed for its third straight weekly drop on Friday, hurt by the prospect of rate cuts next year after the Federal Reserve pushed back against hawkish market bets, lifting the euro and sterling to their highest since October.
The euro was steady at $1.1741 in early Asian hours after a 0.37% rise in the previous session, while the pound was marginally firmer at $1.33955. Both are poised for their third straight week of gains as the dollar remains under pressure.
The Fed cut rates as expected this week, but the comments from Fed Chair Jerome Powell and the accompanying statement were viewed by investors as less hawkish than expected and reinforced dollar selling momentum.
Investors face uncertainty over the path of U.S. monetary policy next year as inflation trends and labour market strength remain unclear, with traders pricing in two rate cuts in 2026 in contrast with policymakers who see only one cut next year and one in 2027.
Oil prices, a key indicator of currency parity, rose on Friday, supported by concerns of Venezuelan supply disruptions, though they remained on track for a weekly drop amid cautious market sentiment and optimism over the prospects for a Russia-Ukraine peace deal.
Brent crude futures rose 43 cents, or 0.70%, to $61.71 a barrel by 0352 GMT, and U.S. West Texas Intermediate crude was at $58.03 a barrel, up 43 cents, or 0.75%.
This is an intra-day update
American Dollar Exchange Rate