The Pakistani rupee registered marginal improvement, appreciating 0.04% against the US dollar in the inter-bank market on Tuesday.

At close, the local unit settled at 278.12, a gain of Re0.12 against the greenback, as per the State Bank of Pakistan (SBP).

On Monday, the rupee closed at 278.24, down by Re0.03.

In a key development, it was learned that Saudi Crown Prince Mohammed bin Salman is expected to arrive next week for crucial talks with Pakistani leadership, including the signing of several memorandum of understanding (MoUs) aimed to bolster Saudi investment in various sectors including agriculture, mining, human resource, energy, chemicals, and maritime.

Internationally, the US dollar gained against the yen on Tuesday as gaping interest rate differentials weighed on the Japanese currency.

The US dollar gained 0.22% to 154.235 yen in early Asian trading, adding to its 0.58% rally from Monday.

On Friday, it sank as low as 151.86 yen for the first time since April 10, as softer-than-expected monthly US jobs data added to the losses following what Bank of Japan data suggested may have been a total of some 9 trillion yen ($58.37 billion) in official intervention.

Oil prices, a key indicator of currency parity, edged up on Tuesday after Israel struck Rafah in Gaza and talks for a ceasefire hung in the balance, maintaining the support that the market has gained from heightened Middle East tensions and risk to supplies.

Hamas on Monday agreed to a Gaza ceasefire proposal from mediators, but Israel said the terms did not meet its demands and pressed ahead with strikes in Rafah while planning to continue negotiations on a deal.

Brent crude futures rose 21 cents, or 0.3%, to $83.54 a barrel by 0810 GMT while US West Texas Intermediate (WTI) crude futures were up 1 cent at $78.49.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 278.12

OFFER                      Rs 278.32

Open-market movement

In the open market, the PKR gained 32 paisa for buying and 29 paisa for selling against USD, closing at 276.41 and 279.09, respectively.

Against Euro, the PKR gained 2 paisa for buying and lost 2 paisa for selling, closing at 295.63 and 298.35, respectively.

Against UAE Dirham, the PKR remained unchanged for buying and gained 2 paisa for selling, closing at 75.00 and 75.70, respectively.

Against Saudi Riyal, the PKR lost 1 paisa for buying and gained 2 paisa for selling, closing at 73.29 and 73.93, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 276.41

OFFER                      Rs 279.09