The Pakistani rupee strengthened against the US dollar, appreciating 0.11% during the opening hours of trading in the inter-bank market on Friday.
At 10:10am, the currency was hovering at 277.65, a gain of Re0.31 against the greenback.
On Thursday, the rupee had settled at 277.96, according to the State Bank of Pakistan (SBP).
Internationally, the US dollar stuck close to a 13-month high on Friday as investors assessed the outlook for the Federal Reserve’s interest rate path and uncertainty in Europe kept the euro on the back foot, while bitcoin eyed the $100,000 level.
The yen, meanwhile, held its ground against the greenback after domestic core inflation figures remained above the Bank of Japan’s (BOJ) 2% target in a sign conditions for further interest rate hikes were falling in place.
The US dollar index edged down 0.05% to 107.01, not far off Thursday’s one-year high of 107.15, its highest level since Oct. 4, 2023, with little data this week to dent its march higher.
Data overnight showed US weekly initial jobless claims unexpectedly dropped to a seven-month low but also indicated some slack as it is taking longer for the unemployed to find new jobs, giving the Fed cushion to cut rates again in December.
The US dollar has rallied around 3% so far this month on expectations that US President-elect Donald Trump’s policies could reignite inflation and limit the Fed’s ability to cut rates.
Recent comments from Fed officials, including Chair Jerome Powell, have indicated the central bank may take a slower course in its rate cut path.
Oil prices, a key indicator of currency parity, rose on Friday after Russia said it had fired a ballistic missile at Ukraine and warned of a broadening conflict, raising the prospect of tightening crude supplies.
Brent crude futures gained 14 cents, or 0.2%, to $74.37 a barrel by 0007 GMT.
US West Texas Intermediate crude futures rose 17 cents, or 0.2%, to $70.27 per barrel.
This is an intra-day update
American Dollar Exchange Rate