The Pakistani rupee maintained its positive momentum against the US dollar, appreciating 0.08% during Wednesday’s opening hours of trading in the inter-bank market.
At 10am, the rupee was hovering at 281.20, a gain of Re0.22 against the greenback.
On Tuesday, the local unit closed at 281.42.
Internationally, the US dollar edged up from its lowest level in close to a week on Wednesday, with traders expecting two more US interest rate cuts this year, even after Federal Reserve Chair Jerome Powell struck a cautious tone on further easing overnight.
Australia’s dollar firmed after a hotter-than-expected headline reading of consumer inflation, less than a week before the Reserve Bank’s next policy decision. New Zealand’s dollar was steady following the naming of a new central bank chief.
The US dollar index, which measures the currency against six major rivals, added 0.1% to 97.335 as of 0150 GMT, attempting to claw back some ground after two straight losing sessions that saw it touch the lowest since Thursday at 97.198 overnight.
Markets are priced for quarter-point rate cuts at each of the remaining two Fed policy meetings this year. Another reduction is expected in the first quarter of 2026, broadly aligning with forecasts from Fed officials following a quarter-point cut on Wednesday of last week.
The dollar had bounced back from the lowest level since early 2022 at 96.224 after the Fed’s policy announcement and Powell’s subsequent news conference, which fell short of the market’s more dovish expectations following a sharp weakening of the labour market.
Oil prices, a key indicator of currency parity, rose for a second day on Wednesday as an industry report showed US crude inventories declined last week, adding to a sense in the market of tightening supplies.
Brent futures rose 27 cents to $67.90 a barrel by 0005 GMT.
US West Texas Intermediate crude futures gained 28 cents to $63.69.
This is an intra-day update
American Dollar Exchange Rate