The Pakistani rupee saw marginal improvement against the US dollar, appreciating 0.08% during the opening hours of trading in the inter-bank market on Monday.
At 10am, the rupee was hovering at 280, a gain of Re0.21 against the greenback.
During the previous week, rupee depreciated further against the US dollar as it lost Re0.24 or 0.09% in the inter-bank market.
The local unit closed at 280.21, against 279. 97 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).
Internationally, the US dollar hovered close to a five-month low against its major peers on Monday, pressured by President Donald Trump’s erratic trade policies and a run of soft macroeconomic data.
The euro stood not far from a five-month peak after German parties on Friday agreed on a fiscal deal that could boost defence spending and revive growth in Europe’s largest economy.
Elsewhere, the Japanese yen stuck close to a five-month top, buoyed by hawkish signals from the Bank of Japan, although the central bank is widely expected to retain the status quo in a policy decision on Wednesday. The US Federal Reserve is also expected to leave policy unchanged on Wednesday.
The Chinese yuan edged back towards the strongest level in four months in offshore trading, ahead of a highly anticipated press conference on steps to boost domestic consumption, scheduled for 0700 GMT on Monday.
The US dollar index, which measures the currency against the euro, yen and four other counterparts, was little changed at 103.71 early in the Asian morning, less than 0.5% away from a five-month trough of 103.21 reached last Tuesday.
The index is currently down almost 6% from the more than two-year peak of 110.17 touched in mid-January, as optimism that Trump’s presidency would spur growth turned into worries that his trade policies could trigger recession.
Oil prices, a key indicator of currency parity, traded higher on Monday after the United States vowed to keep attacking Yemen’s Houthis until the Iran-aligned group ends its assaults on shipping.
Brent futures rose 41 cents or 0.6%, to stand at $70.99 a barrel by 0336 GMT, while U.S. West Texas Intermediate crude futures rose 40 cents, or 0.6%, to $67.58 a barrel.
This is an intra-day update
