The Pakistani rupee recorded marginal improvement against the US dollar, appreciating 0.06% during the opening hours of trading in the inter-bank market on Wednesday.
At 10am, the currency was hovering at 280.50, a gain of Re0.17 against the greenback.
On Tuesday, the local unit closed at 280.67.
Globally, the Japanese yen regained its footing and the US dollar held steady against most of its biggest peers in early trading in Asia on Wednesday, as investors switched into safe havens after a days-long global selloff in stocks.
The yen advanced 0.1% after hitting a nine-month low against the dollar on Tuesday and was fetching 155.49 yen to the dollar.
The dollar index, which measures the greenback’s strength against a basket of six currencies, was flat at 99.594, close to a one-week high, as US Treasury bonds drew bids.
Traders are inching up bets on monetary easing from the Federal Reserve at its next meeting, although there is still uncertainty given the division within the central bank on whether to delay a rate cut.
Fed funds futures are pricing an implied 46.6% probability of a 25-basis-point cut at the December 10 meeting, compared to a 42.4% chance a day earlier, according to the CME Group’s FedWatch tool.
Oil prices, a key indicator of currency parity, fell on Wednesday as an industry report showing crude and fuel inventories rose last week in the US, the world’s biggest crude consumer, reinforced mounting concerns that supply is exceeding demand in the market.
Brent crude futures dropped 28 cents, or 0.43%, at $64.61 a barrel as of 0200 GMT, after gaining 1.1% in the previous session. US West Texas Intermediate crude futures were down 24 cents, or 0.4%, at $60.5 a barrel, after rising 1.4% on Tuesday.
This is an intra-day update
American Dollar Exchange Rate