The Pakistani rupee maintained its upward momentum against the US dollar, appreciating 0.13% during the opening hours of trading in the inter-bank market on Friday.
At 10am, the currency was hovering at 281.85, a gain of Re0.37.
On Wednesday, the rupee had closed at 282.22.
The inter-bank was closed on Thursday on account of the 14th August holiday.
The local currency has maintained a positive trajectory against the greenback in recent days on account of improved sentiment in the currency market amid an ongoing crackdown by law enforcement agencies against illegal currency dealers and smugglers.
Internationally, the US dollar held on to previous session gains on Friday after hotter-than-expected inflation data prompted traders to trim wagers on rate cuts by the US Federal Reserve.
The euro and sterling were steady against the dollar after falling 0.5% and 0.3% on Thursday, respectively, while the Japanese yen rose 0.3% to 147.395 following stronger-than-expected GDP data for the second quarter.
Overnight, markets had to contend with US producer prices showing the quickest rise in three years in July amid a surge in the costs of goods and services, pointing to a broad pick up in inflationary pressures, which analysts say could pose a dilemma for the Fed.
The hot measure of producer price inflation followed a comforting consumer inflation outcome earlier in the week, which had boosted expectations of policy easing in the world’s largest economy and helped lift risk assets across the board.
Odds of a 25-basis-point cut by the US central bank retreated slightly after the producer price figures, per CME’s FedWatch tool.
Oil prices, a key indicator of currency parity, nudged higher on Friday to fresh one-week highs after US President Donald Trump warned of “consequences” if Russia blocked a Ukraine peace deal, injecting concerns about supply.
Sentiment was also boosted by strong economic data out of Japan, which is among the largest global crude importers.
Brent crude futures gained 16 cents, or 0.2%, to $67.00 a barrel by (0017 GMT). US West Texas Intermediate crude futures were up 14 cents, also 0.2%, to $64.10.
This is an intra-day update
