The dollar lost Rs1.48 in value to close at Rs278.81 in interbank, against the previous closing of Rs280.29.

The greenback had gained over Rs3 to reach Rs280.29 on Wednesday.

The rupee saw one of the longest appreciation runs against the US dollar, which came after the central bank announced a list of “structural reforms” last month, targeting illegal exchange companies and smugglers.

The bullish trend continued at the Pakistan Stock Exchange KSE-100 Index throughout Thursday, making gains of 933.68, or 1.89 per cent, to close at 50,365.15, a milestone reached after six years.

Globally, the US dollar held the yen near a two-week low, as growing expectations that the US Federal Reserve will keep rates higher for longer had the greenback and US Treasury yields on the rise overnight and markets awaited a speech by Fed Chair Powell.