The Pakistani rupee registered marginal improvement against the US dollar, appreciating 0.04% during the opening hours of trading in the inter-bank market on Friday.
At 10am, the local currency was hovering at 281.50, a gain of Re0.11 against the greenback.
On Thursday, the rupee closed the day at 281.61.
Internationally, the US dollar fell in tandem with US Treasury yields on Friday after downside surprises on US economic data this week cemented bets of more Federal Reserve rate cuts this year.
The week started out with a mix of market tailwinds headlined by a US-China trade truce which propelled the US dollar higher, though the euphoria soon fizzled out and left currencies trading sideways.
Most of the action in the foreign exchange market came from the dollar’s moves against the South Korean won, where it fell sharply for two straight days on news that Washington and Seoul discussed the dollar/won market earlier this month.
The dollar last traded 0.14% lower at 1,394.70 won.
In the broader market, the US dollar was struggling to regain its footing after an overnight slide following data which showed US producer prices unexpectedly fell in April.
Against a basket of currencies, the US dollar fell 0.1% to 100.70, though it was on track for a marginal weekly gain of 0.3% thanks to its sharp 1.3% rise on Monday.
Markets are now pricing in roughly 56 basis points worth of Fed cuts by December, up from 49 bps the previous day.
Oil prices, a key indicator of currency parity, held steady on Friday, heading for a second consecutive weekly gain due to easing US-China trade tensions, though a potential return of Iranian supply limited price gains.
Brent crude futures dipped 1 cent to $64.52 a barrel by 0326 GMT. US West Texas Intermediate crude futures added 2 cents to $61.64.
Both contracts fell more than 2% in the previous session following a selloff due to the rising prospect of an Iranian nuclear deal.
President Donald Trump said the US was nearing a nuclear deal with Iran, with Tehran “sort of” agreeing to its terms. However, a source familiar with the talks said there were still issues to resolve.
This is an intra-day update
