The Pakistani rupee remained largely stable against the US dollar, appreciating 0.01% during the opening hours of trading in the inter-bank market on Wednesday.
At 10:15am, the local unit was hovering at 278.47, a gain of Re0.03 against the greenback.
On Tuesday, the rupee had closed at 278.50 after a loss of Re0.13.
In recent weeks, the domestic currency has largely been around 277-279 against the dollar as Pakistan moves forward with its plan to win a longer and longer International Monetary Fund (IMF) bailout programme.
Meanwhile, the coalition government is all set to present its first growth-oriented federal budget for the fiscal year 2024-25, with an estimated outlay of over Rs18 trillion, on Wednesday.
The budget for fiscal year 2024-25 will be presented before the National Assembly by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb.
Internationally, the US dollar steadied on Wednesday after hitting a four-week high against peer currencies overnight as market players awaited key US inflation data and the Federal Reserve’s updated interest rate projections due later in the day.
Data showed consumer inflation rose at a steady pace in May, while producer price declines narrowed slightly, adding to signs that government efforts to prop up the economy were starting to bear fruit.
The dollar index, which measures the greenback against a handful of other major peers, was little changed at 105.26, after touching its strongest level since May 14 at 105.46 overnight.
The US dollar has rebounded after Friday’s stronger-than-expected jobs report raised the prospect of inflation remaining sticky while growth stays strong, making the US central bank less likely to cut rates in the coming months.
Oil prices, a key indicator of currency parity, ticked higher on Wednesday amid upbeat global demand views from the US Energy Information Administration and OPEC, reinforced by industry data showing US crude oil inventories fell more than expected last week.
Brent crude futures rose 37 cents, or 0.45%, to $82.29 a barrel at 0400 GMT, while US West Texas Intermediate (WTI) crude futures gained 46 cents, or 0.6%, to $78.36.
This is an intra-day update
American Dollar Exchange Rate