The Pakistani rupee posted a marginal improvement against the US dollar, appreciating 0.04% during the opening hours of trading on Thursday.
At 10am, the currency was hovering at 281.35, a gain of Re0.12 in the inter-bank market.
On Wednesday, the rupee closed the day at 281.47.
Internationally, the US dollar held steady against the euro on Thursday following its biggest rise in two weeks a day earlier, when the Federal Reserve warned of rising risks to the economy from higher inflation and unemployment.
The US dollar was also supported by the prospect of a de-escalation in trade tensions between Washington and Beijing, with investors closely watching for developments ahead of a planned meeting in Switzerland on Saturday.
On Wednesday, the Federal Open Market Committee (FOMC) left interest rates unchanged, as widely expected, but Fed Chair Jerome Powell said it is not clear if the economy will continue its steady pace of growth or wilt under mounting trade uncertainty and a possible spike in inflation.
Markets currently price three quarter-point rate cuts by year-end, with the next coming in July or September.
The US dollar traded little changed at $1.1313 per euro early on Thursday in Asia, after climbing 0.56% on Wednesday to snap a three-day losing run.
The US dollar index, which measures the greenback against those three currencies and three more major peers, was stable at 99.842 after rising 0.26% on Wednesday.
Oil prices, a key indicator of currency parity, steadied on Thursday after falling more than $1 in the previous session as uncertainty over the outcome of trade talks between the U.S. and China, the world’s two largest oil consumers, weighed on investor sentiment.
Brent crude futures were unchanged at $61.12 a barrel, while U.S. West Texas Intermediate crude were up 6 cents, or 0.1% to $58.12 a barrel at 0058 GMT. Both contracts slumped 1.7% on Wednesday as investors doubted that the upcoming trade talks will result in a breakthrough.
American Dollar Exchange Rate