The Pakistani rupee maintained its upward momentum against the US dollar, appreciating 0.1% during the opening hours of trading in the inter-bank market on Friday.
At 10am, the currency was hovering at 282.28, a gain of Re0.28.
On Thursday, the currency settled at 282.56.
Globally, the US dollar was under pressure on Friday and was on course for a weekly fall as US President Donald Trump’s temporary choice for a fill-in Federal Reserve Governor stoked expectations for a dovish pick to replace chair Jerome Powell when his term ends.
Sterling hovered near a two-week high, clinging to Thursday’s sharp gains as the Bank of England cut interest rates but only after a narrow 5-4 vote, which showed the central bank’s easing bias lacked conviction.
Meanwhile, Trump’s decision to nominate Council of Economic Advisers Chairman Stephen Miran to serve on a newly vacant seat at the Fed, while White House seeks a permanent addition, weighed on the dollar.
Miran replaces Governor Adriana Kugler following her surprise resignation last week.
Trump has repeatedly criticised Powell for not cutting interest rates, and while he has backed off threats to oust Powell before his term ends on May 15 has accelerated the search for a replacement.
Fed Governor Christopher Waller is emerging as a top candidate to be the next chair, Bloomberg News reported on Thursday.
Against a basket of peers, the dollar is down nearly 0.7% on the week so far as concerns over softening US economic momentum, especially in the labour market, boosted hopes of Fed rate cuts.
The dollar index was last at 98.04 in early trading on Friday. The Japanese yen was flat at 147.07 per dollar.
Oil prices, a key indicator of currency parity, were little changed in early Asian hours on Friday, but were headed for their steepest weekly losses since late June, as investors expressed concern over the impact on the global economy from tariffs that kicked into effect on Thursday.
Brent crude futures were down three cents to $66.40 a barrel at 0050 GMT, on track to decline more than 4% week-over-week. US West Texas Intermediate crude futures were down six cents, or 0.1%, to $63.82 a barrel, set to fall more than 5% on a weekly basis.
