After depreciating against the greenback on Wednesday, the rupee returned to extending gains against the dollar on the interbank market by Rs1.48.

For most of September, the rupee saw gains upwards of 6pc, which followed an administrative crackdown on the informal currency market, eventually becoming the best-performing currency for that month. The gains saw a reversal by October 17.

Analysts attributed the reversal of the trend to a higher demand for the greenback in the banking market for upcoming foreign payments.

According to the State Bank of Pakistan, the dollar closed at Rs278.81 against the rupee on Thursday from the previous close of Rs280.29.

Meanwhile, the Pakistan Stock Exchange KSE-100 Index traded in the green before the afternoon, making gains of 1.89 per cent. The index closed at 50,365.15 points from the previous 49,431.47.