Karachi: Rupee made strides against dollar, appreciating 3.83 percent in inter-bank market. At close, domestic unit settled at 275.44, an increase of Rs 10.55, as per State Bank of Pakistan.

"This is highest day-on-day recovery after May 12, 2023 (Rs 13.85 or 4.86pc)," Arif Habib Limited said in note. Last week, rupee registered back-to-back gains against dollar to settle at 285.99.

Dollar was being quoted in range of Rs 277-Rs 280 in open market, further decrease of Rs 8, currency dealers said. Rates are far cry from range of 308-310 dealers were quoting in May-June.

Markets were shut for Eid holidays last week and bank holiday on Monday. In related development, Pakistan has reportedly sent Letter of Intent (LoI) to International Monetary Fund containing nine major assurances following staff-level agreement on nine-month $ 3 billion stand-by arrangement.

 "Market has shown positive enthusiasm in response to government's recent agreement with IMF for financial assistance plan worth $ 3 billion," Waqas Kukaswadia Deputy Head of Research at JS Global said.

Globally, against basket of currencies, eased 0.039 percent to 102.910 after data overnight showed US manufacturing slumped further in June, reaching levels last seen when nation was reeling from initial wave of Covid-19 endemic. Oil prices, key indicator of currency parity rose on Tuesday as markets weighed supply cuts for August by top exporters Saudi Arabia and Russia against backdrop of an uncertain global economic outlook.