By 10am, the rupee was trading at 280, reflecting a gain of Re0.21 against the dollar.

In the previous week, the rupee had depreciated further, losing Re0.24 or 0.09% in the inter-bank market.

The local currency closed at 280.21, up from 279.97 the previous week, according to the State Bank of Pakistan (SBP).

Globally, the US dollar remained near a five-month low against major currencies on Monday, influenced by President Donald Trump’s unpredictable trade policies and a series of weak macroeconomic reports.

The euro was close to a five-month high after German political parties reached an agreement on a fiscal deal that could enhance defense spending and stimulate growth in Europe’s largest economy.

The Chinese yuan approached its strongest level in four months during offshore trading, ahead of a highly anticipated press conference on measures to boost domestic consumption, set for 7am GMT on Monday.

The index has declined nearly 6% from its two-year high of 110.17 recorded in mid-January, as initial optimism about Trump’s presidency transforming growth has shifted to concerns that his trade policies may lead to a recession.

Oil prices, a crucial factor in currency valuation, rose on Monday after the United States pledged to continue its strikes against Yemen’s Houthis until the Iran-aligned group ceases its attacks on shipping.

Brent crude futures increased by 41 cents, or 0.6%, to $70.99 per barrel by 03:36 GMT, while US West Texas Intermediate crude futures rose by 40 cents, or 0.6%, to $67.58 per barrel.

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Pakistani rupee steady against US dollar in interbank market

Pakistani rupee sees slight increase against US dollar in inter-bank market

Oil prices edge higher as dollar eases