The Pakistani rupee improved further against the US dollar, appreciating 0.07% during the opening hours of trading in the inter-bank market on Wednesday.
At 10am, the local currency was hovering at 280.37, a gain of Re0.2 against the greenback.
On Tuesday, the local unit closed at 280.57.
Internationally, the US dollar eased on Wednesday in the broader market, after benign US economic data reinforced expectations of a December rate cut, and as investors wagered that the leading candidate for the next Federal Reserve chair may guide policy in a more dovish direction.
Data on Tuesday showed US retail sales rose less than expected in September, while producer prices were in line with expectations.
US consumer confidence also sagged in November as households worried about jobs and their financial situation.
All of that left traders adding to bets of a Fed cut next month, with markets now pricing in an 84% chance of a 25-basis-point move, according to the CME FedWatch tool, which in turn kept pressure on the dollar.
Against a weaker greenback, the euro edged closer to the $1.16 level and last bought $1.1583, helped slightly by signs of progress in a peace plan between Russia and Ukraine.
Against a basket of currencies, the dollar was down 0.2% to 99.67, having lost 0.3% in the previous session, its biggest daily decline in nearly three weeks.
Oil prices, a key indicator of currency parity, recovered slightly on Wednesday, after dipping to one-month lows in the previous session amid signs that Ukraine is nearing a peace deal with Russia that would likely lead to the end of international sanctions on Russian supply.
Brent crude futures rose 19 cents, or 0.3%, to $62.67 a barrel as of 0114 GMT, while US West Texas Intermediate crude futures gained 14 cents, or 0.24%, to $58.09 a barrel.
Both contracts settled down 89 cents on Tuesday after Ukrainian President Volodymyr Zelenskiy told European leaders in a speech that he was ready to advance a US-backed framework for ending the war with Russia and that only a few points of disagreement remained.
This is an intra-day update
American Dollar Exchange Rate