KARACHI: The rupee bounced back from three days of losses to close higher on Thursday, tracking a relief rally in global financial markets following US President Donald Trump’s move to temporarily lower the heavy tariffs on many countries.

The rupee closed at 280.56 per dollar in the interbank market, up from 280.78 in the previous session.The rupee also regained value in the open market, trading at 282.08 to the dollar, compared with 282.15 on Wednesday.

Dealers said the local unit increased in its value due to positive sentiments surrounding the global and Pakistan’s economy after the US announced a 90-day reciprocal tariff pause while simultaneously increasing levies on select Chinese imports to 125 per cent. This development sparked a sharp rally in global markets, helping to recover some of the recent losses.

“On the domestic front, fuel prices are anticipated to decline by Rs12 in the upcoming fortnight — a welcome relief for consumers. Coupled with a recent reduction in electricity tariffs, this trend is likely to ease inflationary pressures and enhance consumers’ disposable incomes,” said Chase Securities in a note.