The Pakistani rupee saw significant improvement against the US dollar, appreciating 0.26% during the opening hours of trading in the inter-bank market on Thursday.
At 10am, the currency was hovering at 284.03, a gain of Re0.73.
On Wednesday, the currency settled at 284.76.
Pakistan’s law enforcement agencies have reportedly launched a crackdown against foreign currency smugglers, aiming to prevent the illegal outflow of currencies such as US dollars to neighbouring countries, including Afghanistan and Iran.
The raids led to some appreciation of the rupee against US dollar on Wednesday, said Exchange Companies Association of Pakistan (ECAP) chairman Malik Muhammad Bostan on Wednesday.
Internationally, the euro crept toward its highest level in nearly four years on Thursday while the yen held to gains following more progress on trade deals between the United States and its largest trading partners, which in turn lifted the broader market mood.
Currencies mostly shrugged off news that US President Donald Trump, a vocal critic of Federal Reserve Chair Jerome Powell, will visit the central bank on Thursday.
It was not immediately clear whether Trump, who has lambasted Powell repeatedly for not cutting US interest rates more aggressively, would be meeting with the Fed chief.
Markets were paying close attention to various tariff negotiations. The European Union and the US are moving towards a trade agreement that could include a 15% US baseline tariff on EU goods and possible exemptions, two European diplomats said on Wednesday.
That came on the heels of Washington’s trade deal with Tokyo that lowers tariffs on auto imports and spares the latter from punishing new levies on other goods in exchange for a $550 billion package of US-bound investment and loans.
Global markets took to the latest developments positively, as risk assets rallied and investors sold the US dollar.
The dollar index eased slightly to 97.15.
Oil prices, a key indicator of currency parity, rose on Thursday, buoyed by optimism over US trade negotiations that would ease pressure on the global economy and a sharper-than-expected decline in US crude inventories.
Brent crude futures gained 24 cents, or 0.4%, to $68.75 a barrel by 0032 GMT. US West Texas Intermediate crude futures climbed 25 cents, or 0.4%, to $65.50 per barrel.
Both benchmarks were little changed on Wednesday as markets monitored developments in US-European Union trade talks, following President Donald Trump’s tariff deal with Japan.
This is an intra-day update
