The Pakistani rupee weakened against the US dollar in the interbank foreign exchange market on Tuesday.

The greenback strengthened by five paisas and was trading at 279.31 at the market closing as against Rs279.26 the previous day.

In the open market, the buying and selling rates of the dollar stood at Rs279.3 and Rs 282.3, respectively, at the time of filing this story.

Since crossing the Rs300 mark a few months ago, the value of the dollar has slowly decreased in the face of a crackdown by the government against hoarding and smuggling.

The local currency started to make some ground against the dollar in interbank and open markets after the International Monetary Fund reached a staff-level agreement with Pakistan on a $3 billion stand-by agreement in July 2023.

Globally, the US dollar drifted weaker on Monday, pressured by lower Treasury yields, as traders waited for more crucial economic data for fresh clues on the timing of Federal Reserve interest rate cuts.

Bitcoin rose to a more than two-year peak amid big flows into cryptocurrency exchange-traded funds.

The dollar index - which measures the currency against six major peers, including the euro and yen - eased 0.07% to 103.79 in early Asian trading, bringing it closer to the bottom of the 103.43-104.97 range of the past month.