The Pakistani rupee extended its marginal gains against the US dollar in the interbank market on Friday.
The local unit closed the day at 277.16, a gain of Re0.01 against the greenback.
On Thursday, the Pakistani rupee settled at 277.17 against the dollar.
Internationally, the US dollar was set for its first back-to-back weekly gains in more than three months on Friday, as surging Treasury yields and mounting bets on further Federal Reserve rate hikes kept the greenback near multi-month peaks.
Dollar strength pushed the euro to a two-month low of $1.1370 and put it on track for a third weekly decline, its worst losing streak since the end of 2025. Sterling languished near a three-month low of $1.3220 and was on track for its worst weekly performance in four months.
Markets have aggressively repriced the interest rate trajectory after the Fed tightened policy last week, while robust economic data and fresh energy supply concerns have further strengthened that conviction. A bond selloff, which sent long-dated US Treasury yields to their highest in more than 20 years, also gave the greenback a leg up.
The dollar index, which measures the US currency against a basket of peers, has climbed more than 1% this week to a two-month high, marking its first back-to-back weekly gains since June. However, the rally was losing some momentum, last edging a touch lower at 101.2.
Oil prices, a key indicator of currency parity, fell more than 1% on Friday as markets weighed the possibility of a truce between the US and Iran against concerns that increasing attacks against Saudi Arabia by Houthi fighters could disrupt supply from the key Middle Eastern producer.
Brent was down $1.34, or 1.3%, at $105.26 a barrel at 1215 GMT, while West Texas Intermediate (WTI) was $1.83, or 1.9%, lower at $92.78 a barrel.
For the week so far, Brent has gained 1.5% and WTI has dropped 7.4%.
Inter-bank market rates for dollar on Friday
BID Rs 277.16
OFFER Rs 277.36
Open-market movement
In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 278.12 and 279.20, respectively.
Against Euro, the PKR remained unchanged for buying and gained 23.00 paisa for selling, closing at 316.43 and 319.49, respectively.
Against UAE Dirham, the PKR lost 2.00 paisa for buying and 1.00 paisa for selling, closing at 75.72 and 76.29, respectively.
Against Saudi Riyal, the PKR lost 1.00 paisa for both buying and selling, closing at 74.02 and 74.52, respectively.
Open-market rates for dollar on Friday
BID Rs 278.12
OFFER Rs 279.20
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