Karachi: Rupee registered marginal improvement against dollar, appreciating 0.03 percent in interbank market. At close, domestic unit settled at 278.66, gain of 0.08 paisa, against greenback.

In interbank market rates for dollar for bid were to Rs 278.66 and for offer they were to Rs 278.86. In open market movement,  In unit gained 1 paisa for both buying and selling against dollar, closing at 279.26 and 280.49, respectively.

Against Euro, unit lost 15 paise for buying and gained 24 paise for selling, closing at 300.50 and 302.55, respectively. Against UAE Dirham, it lost 7 paise for buying and remained unchanged for selling, closing at 75.84 and 76.35, respectively.

Against Saudi Riyal, rupee lost 10 paise for buying and remained unchanged for selling, closing at 74.11 and 74.60, respectively.

Globally, dollar was on defensive on Thursday after Federal Reserve opened door for an interest rate cut in September. Dollar index, which measures US currency against six peers, was down 0.1 percent at 103.95, having dropped 0.38 percent on Wednesday.

Oil prices, key indicator of currency parity, rose on Thursday, extending gains from previous session, after killing of Hamas leader in Iran raised threat of wider Middle East conflict and concern over its impact on oil.

Global benchmark Brent crude futures rose 78 cents, or 1 percent, to $ 81.62 a barrel while US West Texas Intermediate crude futures gained 79 cents, also 1 percent to $ 78.70 a barrel.