The Pakistani rupee registered marginal decline against the US dollar, depreciating 0.01% during the opening hours of trading in the interbank market on Wednesday.
At 10:10am, the local currency was hovering at 283.43, a loss of Re0.02 against the greenback.
On Tuesday, the local unit closed at 283.41.
Internationally, the US dollar held on to gains against major currencies early on Wednesday, buoyed by demand for safety as conflict between Israel and Iran kept investors on edge ahead of a Federal Reserve decision on interest rates later in the day.
Israel has pounded Iran over the past six days to halt its nuclear activity and has asserted the need for a change of government in the Islamic republic.
The US military is also bolstering its presence in the region, Reuters reported, sparking speculation of US intervention which investors fear could spread into a region replete with energy resources, supply chains and infrastructure.
Against this backdrop, the US dollar has found support as a safe bid, firming roughly 1% against the Japanese yen, Swiss franc and euro since Thursday, helping it shave declines from earlier in the year.
The greenback had lost more than 8% earlier in the year due to eroding confidence in the U.S. economy amid trade policies.
The US dollar firmed as much as 0.1% against the yen on Wednesday to touch a one-week top. It was last at 145.21 yen.
In early Asia trade, the Swiss franc was flat at 0.816 a dollar and the euro was up 0.1% at $1.149. A broader index tracking the greenback against six other currencies was little changed after a 0.6% jump in the previous trading session.
Oil prices, a key indicator of currency parity, ticked up in early trading on Wednesday after ending the previous session up more than 4% on worries that the Iran-Israel conflict could disrupt supplies.
Brent crude futures rose 19 cents, or 0.25%, to $76.64 a barrel by 0029 GMT. US West Texas Intermediate crude futures rose 23 cents, or 0.31%, to $75.07 per barrel.
US President Donald Trump on Tuesday called for Iran’s “unconditional surrender” as the Iran-Israel air war entered a sixth day.
This is an intra-day update
American Dollar Exchange Rate