The Pakistani rupee registered slight improvement against the US dollar, appreciating 0.01% during the opening hours of trading in the inter-bank market on Tuesday.
At 10am, the local currency was hovering at 282.02, a gain of Re0.04 against the greenback.
On Monday, the Pakistani rupee closed the day at 282.06.
Internationally, the US dollar struggled to regain its footing Tuesday as investor concerns over a sweeping tax and spending bill and its implications for the US debt profile continued to undermine sentiment towards US assets.
Global stock markets and the euro gained on Monday while the United States was on holiday, after US President Donald Trump delayed the imposition of tariffs on Europe.
Attention now turns to debate in the US Senate on Trump’s tax-cut bill that is expected to add to the debt pile in the world’s largest economy.
Markets have been sensitive to Trump’s proposal, particularly after Moody’s downgrade of the US sovereign credit rating on May 16.
Investor confidence in US assets has been undermined in recent months in the wake of the US president’s erratic global tariff policies.
In the latest example, Trump backed down from threatened 50% duties on European Union shipments from June 1, sending the euro rallying to a one-month high.
The single currency could become a viable alternative to the dollar if governments can strengthen the bloc’s financial and security architecture, European Central Bank President Christine Lagarde said on Monday.
The dollar dropped 0.3% to 142.35 yen.
The dollar index, which tracks the greenback against other major trading partners, slid 0.1%, down for a third-straight session.
Oil prices, a key indicator of currency parity, eased on Tuesday as market participants weighed the possibility of an OPEC+ decision to further increase its crude oil output at a meeting later this week.
Brent crude futures shed 12 cents, or 0.19%, to $64.62 a barrel by 0022 GMT, while US West Texas Intermediate crude was down 15 cents, or 0.24%, at $61.38 a barrel.
This is an intra-day update
