As per the State Bank of Pakistan (SBP), the rupee closed at 177.50 after a day-on-day appreciation of 33 paisas or 0.19%.

Before Friday's gain, the local currency was approaching its all-time low against the US dollar, which was recorded in December last year when it closed at 178.24.

Rupee's gain comes as oil prices retreated on Friday as the disruption of Russian oil exports because of western sanctions outweighed the prospect of more Iranian supplies from a possible nuclear deal.

Meanwhile, the central bank is also set to convene the monetary policy committee on Tuesday to announce the key interest rate.

Since the last MPC, there have been developments on the geopolitical and economic fronts, with the Russia-Ukraine conflict impacting markets globally, making the upcoming announcement all the more important.