The Pakistani rupee strengthened against the US dollar, appreciating 0.07% during the opening hours of trading in the inter-bank market on Friday.
At 10:15am, the rupee was hovering at 281.72, a gain of Re0.2 against the greenback.
On Thursday, the local unit closed the session at 281.92.
Internationally, the US dollar was steady on Friday, poised for a strong weekly performance as investors gear up for an eagerly anticipated speech from the Federal Reserve Chair Jerome Powell that could shape the near-term path for interest rates.
An unexpectedly weak July jobs report, coupled with big downward revisions to hiring in May and June, bolstered hopes of an imminent reduction in borrowing costs, with traders even pricing in a jumbo rate cut for the next meeting in September.
But since then, cautious comments from other policymakers and economic data flashing inflationary risks have tempered those expectations. Still, traders are pricing in a 75% chance of a 25-basis-point rate cut in September, down from 92% a week earlier, the CME FedWatch tool showed.
Federal Reserve officials appeared lukewarm on Thursday to the idea of a rate cut next month, setting the stage for Powell’s speech at the annual Jackson Hole conference in Wyoming, which kicked off on Thursday.
That might leave the dollar vulnerable after a steady but unspectacular rise in the past week. The euro last bought $1.1613, down 0.8% for the week, while sterling was steady at $1.3416, down nearly 1% for the week.
The dollar index, which measures the US currency against six rivals, was at 98.61, on course for a 0.7% rise in the week, snapping its two-week losing streak.
Oil prices, a key indicator of currency parity, were little changed on Friday but were on track to snap a two-week losing streak as hope for immediate peace between Russia and Ukraine dimmed, increasing the risk premium demanded by oil sellers.
Brent crude futures were down 4 cents to $67.63 a barrel at 0052 GMT, while West Texas Intermediate (WTI) crude futures fell 1 cent to $63.51.
Both contracts climbed more than 1% in the prior session. Brent has risen 2.7% this week, while the WTI has gained 1.1%.
This is an intra-day update
