KARACHI: The Pakistani rupee experienced a slight depreciation of 0.04% against the US dollar on Tuesday, closing at 278.93, down by Re0.10 from the previous day's close of 278.83, according to the State Bank of Pakistan (SBP).

Internationally, the Japanese yen lost some of its recent safe-haven gains as investors reacted to the potential market impact of a Chinese startup's new open-source artificial intelligence model, DeepSeek. This AI model, which uses lower-cost chips and less data, has raised concerns that it could disrupt global tech markets, particularly US chipmaker Nvidia, leading to a broad sell-off in stocks and a risk-off mood.

The US dollar steadied after a sharp drop overnight, caused by the AI news. It rose 0.7% against the yen, reaching 155.70, within its recent trading range. The euro fell by 0.6% to $1.0428 ahead of the European Central Bank's policy meeting, with concerns over potential tariff threats from the US.

Former President Trump signaled plans to impose tariffs on imported computer chips, pharmaceuticals, and steel. In commodities, oil prices ticked up but remained near a two-week low, with Brent crude rising by 0.78% to $77.68 per barrel, amid weak economic data from China and concerns over global demand.