The Pakistani rupee strengthened against the US dollar, appreciating 0.04% during the opening minutes of trading in the inter-bank market on Monday.
At 10am, the local currency was hovering at 280.05, a gain of Re0.12 against the greenback.
During the previous week, the Pakistan rupee posted a marginal gain as it appreciated by Re0.08 or 0.03% against the US dollar in the inter-bank market.
The local unit closed at 280.17, against 280.25 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).
Internationally, the Japanese yen recovered some ground on Monday following a steep drop at the end of last week as markets weighed the timing of more interest rate hikes in Japan and the possibility of intervention in thin end-of-year trading.
Bank of Japan policymakers debated the need to continue raising rates, a summary of opinions at their policy meeting in December showed on Monday.
The euro was supported after US President Donald Trump signalled optimism in talks to reach a peace deal to end the war in Ukraine.
Japan has a free hand in dealing with excessive moves in the yen, Finance Minister Satsuki Katayama said last week.
Those intervention warnings have helped keep a lid on dollar-yen positions, but pessimism about Japan’s currency is showing up in other foreign exchange crosses, said Bart Wakabayashi, Tokyo branch manager at State Street.
The yen strengthened 0.3% against the greenback to 156.13 per dollar after a 0.5% slide on Friday.
The dollar index, which measures the greenback against a basket of currencies, fell 0.1% to 97.96. The euro advanced 0.1% to $1.1780.
Oil prices, a key indicator of currency parity, rose on Monday as investors weighed Middle East tensions that could disrupt supply, while a major hurdle remains in the Russia–Ukraine peace talks.
Brent crude futures rose 56 cents, or 0.92%, to $61.20 per barrel at 0236 GMT, while US West Texas Intermediate crude was up 51 cents, or 0.9%, to $57.25.
Both benchmark prices fell more than 2% on Friday as investors weighed a looming global supply glut and the possibility of a Ukraine peace deal ahead of weekend talks between Ukrainian President Volodymyr Zelenskiy and US President Donald Trump.
This is an intra-day update
American Dollar Exchange Rate