The appreciation showed a gain of Re0.02 against the greenback.

Yesterday, the local currency had closed at 278.40 after a gain of Re0.10.

Also read: US dollar falls against rupee, finds a footing in global market

Also at global level, the dollar index fell on Thursday, following overall slightly better than US data and warning from Japan’s authorities about possible action against sharp fall of yen, as per FX Street.

The US economy grew by 1.4% in Q1 vs expected 1.3% rise, weekly jobless claims fell below expectations and durable goods orders jumped well above forecast in May, while traders started to exit dollar longs on looming Japan’s intervention.

However, the pullback from the highest in nearly two months was so far mild and could be seen as a healthy correction, as dollar continues to benefit from growing political uncertainty in Europe and Fed’s narrative about holding the policy unchanged for extended period.

In key developments, the Pakistan Stock Exchange (PSX) on Wednesday gained 335 points to close at 78,275 points. Experts have attributed the gain to expectations that the proposed budget would eventually be passed. It will then pave way for striking a deal with the International Monetary Fund (IMF).

In the international market, the yen languished near a 38-year low and struggled on the weaker side of 160 per dollar, keeping markets on alert for any signs of intervention from Japanese authorities to prop up the currency.

In the broader market, the dollar was on the front foot and stood near an eight-week high against a basket of currencies, helped in part by a weaker yen and as it rose in step with US Treasury yields.