The Pakistani rupee marginally improved against the US dollar, appreciating 0.05% during the opening hours of trading in the inter-bank market on Thursday.
At 12pm, the currency was hovering at 284.83, a gain of Re0.13.
On Wednesday, the currency settled at 284.96.
Internationally, the US dollar was on a fragile footing on Thursday having lost ground overnight as concerns US President Donald Trump was preparing to fire the Federal Reserve chair shook confidence in US markets.
Trump denied reports he was planning to dismiss Fed Chair Jerome Powell, but he kept the door open to the possibility and renewed his criticism of the central bank chief for not lowering interest rates.
Investors worry that removing Powell before his term ends in May 2026 would undermine credibility in the US financial system and the dollar as a safe-haven currency.
Trump has railed against Powell for months for not easing rates, which he says should be at 1% or lower.
The US dollar index, which measures the greenback against major peers, was little changed at 98.384 after a 0.3% slide on Wednesday.
The US currency ticked up 0.2% to 148.14 yen, after a 0.6% decline overnight.
The euro stood at $1.1632, down 0.01%. Sterling edged 0.1% lower to $1.3409. Investors remain focused on tariffs ahead of an August 1 deadline when many trading partners face higher trade levies.
Oil prices, a key indicator of currency parity, rose in early trade on Thursday, reversing the previous session’s losses, buoyed by stronger-than-expected economic data from the world’s top oil consumers and signs of easing trade tensions.
Brent crude futures rose 27 cents, or 0.39%, to $68.79 a barrel at 0000 GMT.
US West Texas Intermediate crude futures were up 31 cents, or 0.47%, at $66.69.
This is an intra-day update
American Dollar Exchange Rate