The Pakistani rupee registered a marginal improvement against the US dollar, appreciating 0.07% during the opening hours of trading in the inter-bank market on Thursday.
At 10:30am, the currency was hovering at 278.53, a gain of Re0.20, against the greenback.
On Wednesday, the local unit closed at 278.73 against the US dollar, according to the State Bank of Pakistan (SBP).
In recent months, the domestic currency has largely been around 277-279 against the dollar as traders have an eye on some strong positive indicators.
Globally, the yen firmed on Thursday after a sharp drop in the previous session in a volatile week that has left sentiment fragile as investors weigh the unwinding of popular carry trades and ponder the rate path Japan’s central bank is likely to take.
The Japanese currency started the week by touching a seven-month high of 141.675 per dollar, a far cry from the 38-year lows it was rooted at in early July as soft US jobs data last week stoked recession worries and roiled investors.
A surprise hike from the BOJ last week also led investors to bail out of carry trades, in which traders borrow the yen at low rates to invest in dollar-priced assets for higher returns.
The sharp moves in the yen has pushed the dollar index , which measures the US currency against six rivals including the yen, to 103.08, near the seven-month low of 102.15 it touched on Monday.
Oil prices, a key indicator of currency parity, edged higher on Thursday for the third straight session after government data showed a steep draw in U.S. crude stockpiles, rebounding from multi-month lows touched this week.
Brent crude futures rose 23 cents, or 0.3%, at $78.56 a barrel by 0017 GMT, while U.S. West Texas Intermediate crude gained 29 cents, or 0.4%, to $75.52.
Brent tumbled to its weakest since early January on Monday, and WTI dipped to its lowest since February, hurt by worry over a US recession and a selloff in global stocks.
US crude inventories fell for a sixth week in a row last week, dropping by 3.7 million barrels to 429.3 million barrels last week.
American Dollar Exchange Rate