The Pakistani rupee strengthened against the US dollar, appreciating 0.09% during the opening hours of trading in the inter-bank market on Friday.
At 10am, the rupee was hovering at 281.55, a gain of Re0.25 against the greenback.
On Thursday, the local unit closed the session at 281.80.
Internationally, the US dollar wobbled on Friday, poised for a 2% drop in August against major currencies on rising odds of the Federal Reserve cutting interest rates next month while worries about the threats to the US central bank’s independence linger.
President Donald Trump’s campaign to exert more influence over monetary policy, including attempts to fire Lisa Cook, one of the Fed’s governors, has weighed on the dollar. Cook filed a lawsuit claiming Trump has no power to remove her from office.
The legal battle is the latest chapter in Trump’s attempts to reshape the central bank after repeatedly criticizing the Fed and its Chair Jerome Powell for not cutting interest rates.
Currency markets started Friday tentatively, with the euro little changed at $1.1675, on course for a 2% gain in August. Sterling last bought $1.3509 and the Japanese yen fetched 146.97 per dollar.
The Australian dollar was steady at $0.6533, set for a 1.6% gain in the month.
The dollar index, which measures the US currency against six major peers, was at 97.917, on course for a 2% decline in the month.
The index is down nearly 10% this year as erratic US trade policies drove investors towards alternative assets.
Oil prices, a key indicator of currency parity, fell on Friday but are set for a weekly gain, caught between expectations of lower demand in the US, the world’s biggest oil user, as the summer demand period is ending and uncertainty around the availability of Russian supply.
Brent crude futures for October delivery, which will expire on Friday, fell 50 cents, or 0.7%, at $68.12 at 0126 GMT, while the more active contract for November slid 46 cents, or 0.7%, to $67.52.
West Texas Intermediate (WTI) crude futures were down 45 cents, or 0.7%, at $64.15. Both benchmarks climbed on Thursday.
This is an intra-day update
American Dollar Exchange Rate