Pak rupee gained 5 paisas against dollar on Tuesday to close at Rs138.83 compared with the last closing of Rs138.88 in inter-bank market as the demand remained a little lower.
The rupee was under pressure given the rising tension between the two countries.
Signing of financing between State Bank of Pakistan (SBP) and Abu Dhabi Fund for Development (ADFD) for deposit of $2 billion helped the local currency to gain last week.
Market is still uncertain about the IMF bailout package and related conditions thereof.
The demand by the importers and corporate sector was offset by flow of remittances and export receipts.
Rupee remained stable against the greenback in the open market.
Malik Bostan Khan, President Forex Association of Pakistan said the buying and selling of US dollar was recorded at Rs138.30/Rs138.80 as against last closing of Rs138.30/Rs138.80 in cash free market.