The Pakistani rupee saw slight improvement against the US dollar during the opening hours of trading, appreciating 0.02% in the inter-bank market on Tuesday.
At 10am, the local currency was hovering at 281.90, a gain of Re0.07 against the greenback.
On Monday, the Pakistani rupee closed the day at 281.97.
Internationally, the US dollar touched a six-week low on Tuesday on signs of fragility in the US economy because of damage from the trade war President Donald Trump’s administration is waging.
While global equity markets have broadly recovered in the wake of the on-again, off-again saga of Trump’s tariff threats, the greenback remains firmly on its back. Factory and jobs data in the United States in the coming days may give further signs of the toll that trade uncertainty is wreaking on the world’s biggest economy.
US duties on imported steel and aluminum are set to double to 50% starting on Wednesday, the same day the Trump administration expects countries to submit their best offers in trade negotiations.
The dollar index, which measures the US currency against six major peers, touched 98.58, the lowest since late April, before rebounding 0.3%. The greenback rallied 0.3% to 143.21 yen.
The dollar index sank 0.8% on Monday after data showed US manufacturing contracted for a third month in May and tariff snarls meant suppliers took longer to deliver goods. Attention now turns to US factory order numbers on Tuesday, along with jobs figures due later in the week.
The US dollar got some respite last week, rising 0.3% after trade talks with the European Union got back on track and a US trade court blocked the bulk of Trump’s tariffs. An appeals court reinstated the duties a day later, and Trump’s administration said it had other avenues to implement them if it loses in court.
Oil prices, a key indicator of currency parity, ticked up on Tuesday on concerns about supply, with Iran set to reject a US nuclear deal proposal that would be key to easing sanctions on the major oil producer, while weakness in the dollar also supported prices.
Brent crude futures gained 21 cents, or 0.32%, to $64.84 a barrel by 0437 GMT. US West Texas Intermediate crude was up 27 cents, or 0.43%, to $62.79 a barrel, after rising about 1% earlier in the session.
This is an intra-day update
American Dollar Exchange Rate