The Pakistani rupee registered significant gain against the US dollar, appreciating 0.07% during the opening hours of trading in the inter-bank market on Friday.
At 10:20am, the local currency was hovering at 280.90, up by Re0.21 against the US dollar.
On Thursday, the local unit closed at 281.11, according to the State Bank of Pakistan (SBP).
Globally, the US dollar remained on the back foot on Friday as global trade frictions and signs of weakness in the US economy supported the case for more rate cuts by the Federal Reserve.
The dollar index is set for its biggest weekly drop in almost three months as an extended shutdown of the US government blocked the publication of key economic data.
The yen held on to gains after Bank of Japan Governor Kazuo Ueda spoke about factors that could lead to a rate increase this month.
The dollar index, which measures the greenback against a basket of currencies, was little changed at 98.23 and remained on course for a 0.6% slide this week – the biggest five-day retreat since late July.
Against the Japanese yen, the US dollar weakened 0.2% to 150.12.
BOJ Governor Ueda said in Washington on Thursday that the central bank remains ready to increase its key policy rate if the likelihood of its growth and price forecasts materializing increases. BOJ Deputy Governor Shinichi Uchida is due to speak later on Friday.
The euro added 0.1% at $1.1701, while sterling also tacked on 0.1% to $1.3446.
Fed Governor Christopher Waller said he is on board with another interest rate cut at the U.S. central bank’s meeting later this month because of the mixed readings on the state of the job market.
Stephen Miran, the Fed’s newest governor and an economic advisor to US President Donald Trump, reiterated support for more aggressive rate cuts at upcoming meetings than the one favored by some of his colleagues.
Oil prices, a key indicator of currency parity, edged lower in early trade on Friday, heading for a weekly loss, with uncertainty over global energy supplies after US President Donald Trump and Russian President Vladimir Putin agreed to meet in Hungary to discuss ending the war in Ukraine.
Brent crude futures fell 8 cents, or 0.13%, lower at $60.98 a barrel at 0030 GMT, while US West Texas Intermediate futures were down 9 cents, or 0.16%, at $57.37.
This is an intra-day update
