The Pakistani rupee strengthened against the US dollar, appreciating 0.1% in the inter-bank market during the opening hours of trading on Thursday.
At 10:55am, the currency was hovering at 278.56, a gain of Re0.29 against the greenback
According to the State Bank of Pakistan (SBP), the rupee closed at 278.85 on Wednesday.
Globally, the US dollar steadied against major peers on Thursday, continuing its near paralysis of the past two days before more concrete announcements on tariffs from US President Donald Trump.
A spate of central bank policy decisions are also due over the next week, with the Bank of Japan widely expected to raise interest rates at the end of a two-day meeting on Friday.
Rate decisions from the US Federal Reserve and European Central Bank are scheduled for Wednesday and Thursday of next week, respectively.
The US dollar index – which measures the currency versus six top rivals, including the euro and yen – was flat at 108.25, following two days of gains of around 0.1%.
On Monday, it tumbled 1.2%, its steepest one-day slide since November 2023, as Trump’s first day in office brought a barrage of executive orders, but none on tariffs.
So far this week, Trump has mooted levies of around 25% on Canada and Mexico and 10% on China from Feb. 1. He also promised duties on European imports, without giving details.
Oil prices, a key indicator of currency parity, dipped in early trade on Thursday, extending losses amid uncertainty over how proposed tariffs by US President Donald Trump on several countries would impact global economic growth and energy demand.
Brent crude futures fell 23 cents, or 0.3%, to $78.79 a barrel at 0135 GMT, while U.S. West Texas Intermediate crude (WTI) eased 18 cents, or 0.2%, to $75.26.
In its previous session, Brent futures settled at $79 in a fifth straight day of losses.
WTI futures settled at $75.44 in a fourth consecutive day of declines.
This is an intra-day update
American Dollar Exchange Rate