The Pakistani rupee remained largely stable against the US dollar, appreciating 0.01% during the opening of trading in the interbank market on Thursday.
At 10am, the local currency was hovering at 283.53, a loss of Re0.02 against the greenback.
On Wednesday, the local unit closed at 283.55.
Internationally, the US dollar firmed on Thursday, buoyed by safe-haven demand due to the looming threat of a broader conflict in the Middle East and possible US involvement, while investors weighed Federal Reserve Chair Jerome Powell’s cautionary tone on inflation.
After a muted start in Asia hours, the US dollar advanced across the board, weighing heavily on risk sensitive currencies after a report said US officials are preparing for the possibility of a strike on Iran in the coming days.
The Australian dollar fell as much as 0.5% but was last down 0.3% at $0.6489, while the New Zealand dollar slipped 0.5% to $0.5998. Emerging market currencies also struggled, with the South Korean won 1% weaker.
Rapidly rising geopolitical tensions have led to the dollar swiftly reclaiming its safe-haven status, making inroads against the yen, euro and the Swiss franc.
Iran and Israel traded further air attacks on Thursday, with the conflict entering its seventh day. Concerns over potential U.S. involvement have also grown, as President Donald Trump kept the world guessing about whether the United States will join Israel’s bombardment of Iranian nuclear sites.
The conflict has heightened fears of broader regional instability, compounded by the spillover effects of the Gaza war.
Oil prices, a key indicator of currency parity, fell on Thursday with investors hesitating to take new positions after President Donald Trump gave mixed signals on potential U.S. involvement in the Israel-Iran conflict, while the Federal Reserve left interest rates unchanged.
Brent crude futures fell 20 cents, or 0.26%, to $76.5 a barrel by 0421 GMT, after gaining 0.3% in the previous session when high volatility saw prices fall as much as 2.7%.
US West Texas Intermediate crude for July fell 4 cents, or 0.05% to $75.10 a barrel, after settling up 0.4% in the previous when it dropped as much as 2.4%.
The July contract expires on Friday and the more active August contract was down 8 cents, or 0.11%, to $73.42 a barrel.
This is an intra-day update
American Dollar Exchange Rate