The local unit closed at 279.29 against the greenback, as per the State Bank of Pakistan. On Wednesday, the rupee registered a marginal decline to settle at 279.35 against the foreign currency.

The government signed new agreements worth $642 million as commitments in the first quarter of the current fiscal year (July-September) 2023-24, the Economic Affairs Division said.

The US dollar plunged to a one-month low against the Japanese yen on Thursday in the international market, as growing speculation that the Bank of Japan could end negative interest rates as soon as this month and bets of imminent US rate cuts dragged on the US currency.

In the broader market, the US dollar was on the back foot, as traders zeroed in on the idea that US interest rates were likely to fall this year even after some upside surprises on inflation.