The Pakistani rupee posted a marginal gain against the US dollar, appreciating 0.04% during the opening hours of trading in the inter-bank market on Tuesday.
At 10:30am, the local currency was hovering at 281.05, up by Re0.11 against the US dollar.
On Monday, the local unit closed at 281.16.
Internationally, the US dollar held steady on Tuesday as US President Donald Trump’s watered-down rhetoric against tariffs on China and a potential meeting with his Chinese counterpart raised hopes of de-escalation in tensions between the two economic heavyweights.
Currency markets were calmer in early Asian trade after a chaotic Friday session when Trump abruptly announced additional levies of 100% on China’s US-bound exports, only to later sound more conciliatory over the weekend.
US Treasury Secretary Scott Bessent also said on Monday that Trump remains on track to meet Chinese leader Xi Jinping in South Korea in late October.
All that breathed new life into the dollar, which in turn kept the euro below the $1.16 level to trade at $1.1566.
Sterling eased 0.06% to $1.3328, while the New Zealand dollar fell anew to hit a six-month low of $0.57145.
Against a basket of currencies, the dollar ticked 0.04% higher to 99.34. The Aussie was little changed at $0.6516, while the yen fell roughly 0.2% to 152.57 per dollar.
Oil prices, a key indicator of currency parity, rose on Tuesday as early signs of a thaw in US-China trade tensions bolstered market sentiment, alleviating concerns over global fuel demand.
Brent crude futures rose 22 cents, or 0.4%, to $63.54 a barrel by 0405 GMT, while US West Texas Intermediate crude was at $59.71 a barrel, up 22 cents, or 0.4%.
In the previous session, Brent settled 0.9% higher, and US WTI closed up 1%.
This is an intra-day update
