Intra-day update: rupee sees gain against US dollar

The Pakistani rupee strengthened against the US dollar, appreciating 0.08% during the opening minutes of trading in the inter-bank market on Wednesday.

At 10:30am, the local currency was hovering at 280.25, a gain of Re0.22 against the greenback.

On Tuesday, the local unit closed at 280.47.

Internationally, the US dollar was becalmed on Wednesday, as other assets hogged the limelight, though investors looking ahead to 2026 were starting to position for US rate cuts to weigh on the greenback.

In morning trade, the Australian dollar touched a three-week high of $0.6576 before retreating a little after gross domestic product data was slightly below expectations.

Overnight the euro cleared its 50-day moving average, after euro zone inflation came in very slightly above expectations, and it bought $1.1629 early in the Asia session.

Moves were dwarfed by the sharp rebound for bitcoin that helped investors more broadly get in the mood for taking on a bit more risk. The biggest cryptocurrency by market value surged about 6% to top $91,000 overnight.

The Japanese yen was steady at 155.70 per dollar, with bets firming on an interest rate hike this month, in contrast with the US where a cut is 85% priced in for the Federal Reserve’s meeting next week.

Sterling was steady at $1.3222, as was the safe-haven Swiss franc at 0.8022 per dollar. The New Zealand dollar hovered at $0.5730.

Looking ahead, expectations for some 90 basis points of U.S. rate cuts before the end of 2026 and the prospect of White House economic adviser Kevin Hassett being nominated as Fed chair have some investors turning bearish on the dollar.

Oil prices, a key indicator of currency parity, fell for a second day on Wednesday as investors waited to see if peace talks in the Russia-Ukraine war could open up more supply amid wider concerns about a surplus, highlighted by rising inventories.

Brent crude futures were down 13 cents, or 0.21%, at $62.32 a barrel at 0221 GMT, after falling 1.1% in the previous session. US West Texas Intermediate crude lost 12 cents, or 0.20%, to trade at $58.52 a barrel, after dropping 1.2% on Tuesday.

This is an intra-day update