The Pakistani rupee registered a marginal decline, depreciating 0.03% against the US dollar during the opening hours of trading in the inter-bank market on Wednesday.
At 10:20am, the currency was hovering at 278.42, a loss of Re0.08 against the greenback.
On Tuesday, the rupee had settled at 278.34 against the greenback, according to the State Bank of Pakistan (SBP).
In recent months, the domestic currency has largely been around 277-279 against the dollar as traders keep an eye on some positive indicators.
Globally, the US dollar slipped to its lowest this year versus the euro on Wednesday as traders braced for potentially crucial revisions to US payrolls data later in the day, ahead of a speech by Federal Reserve Chair Jerome Powell at the end of the week.
The US currency also dipped below the closely watched 145 yen level and hovered close to the more-than-one-year low to sterling reached overnight.
Pressure notably came from US bond yields, which hit their lowest since Aug. 5, when yields crashed to the a more-than-one-year trough after surprisingly soft monthly jobs figures sparked recession fear.
Powell’s keynote address on Friday at the Kansas City Fed’s Jackson Hole economic symposium will be parsed carefully for any hints on the likely size of a rate cut next month, and whether borrowing costs are likely to be lowered at each subsequent Fed meeting.
The US dollar index – which measures the currency against the euro, sterling, yen and three other major rivals – edged to a fresh low since Jan. 2 at 101.34 as of 0026 GMT, after dropping 0.5% or more in each of the previous three sessions.
Oil prices, a key indicator of currency parity, Oil prices slipped on Wednesday on estimates showing swelling US crude inventories and expectations that tensions in the Middle East were easing following a tour of the region by mediators.
Brent crude futures fell 9 cents, or 0.1%, to $77.11 a barrel by 0340 GMT.
US West Texas Intermediate crude dipped 12 cents, or 0.2%, to $73.05 per barrel.
This is an intra-day update
American Dollar Exchange Rate