The Pakistani rupee registered marginal improvement, appreciating 0.01% against the US dollar in the inter-bank market on Wednesday.
At close, the rupee settled at 281.83, a gain of Re0.03 against the greenback. This was rupee’s 14th consecutive gain against the greenback.
On Tuesday, the local unit closed the session at 281.86.
The rupee has maintained a positive trajectory against the US dollar in recent weeks amid improved sentiment in the currency market, following a crackdown by law enforcement agencies against illegal currency dealers and smugglers.
Internationally, the US dollar struggled to gain ground on Wednesday as renewed investor worries about the Federal Reserve’s independence undermined the currency following US President Donald Trump’s latest attempt to extend his power over the central bank.
Trump had on Monday said he would fire Federal Reserve Governor Lisa Cook over alleged improprieties in obtaining mortgage loans, though Cook’s lawyer later said the governor will file a lawsuit to prevent her ouster, kicking off what could be a protracted legal fight.
The US dollar weakened on the developments as Trump’s push to gain more influence over US institutions and the path of monetary policy further eroded investors’ trust in the greenback’s dominance.
Currency moves in Asia on Wednesday were largely subdued, though the dollar struggled to recoup its losses against its peers and last bought 147.52 yen.
The euro steadied at $1.1638, while sterling was similarly little changed at $1.3478.
Against a basket of currencies, the US dollar edged marginally higher to 98.27, after falling 0.24% in the previous session.
Also weighing on the dollar were expectations of faster and deeper US rate cuts, particularly if Cook – should she be removed from her position – gets replaced by someone dovish.
Trump has repeatedly called for the Fed to lower interest rates and has threatened to fire Fed Chair Jerome Powell, although he recently backed down from that.
Oil prices, a key indicator of currency parity, steadied on Wednesday, after falling in the previous session, as investors watched for fresh developments in the Ukraine war and weighed hefty new US tariffs on India, the world’s third-biggest crude consumer.
Brent crude futures fell 9 cents to $67.13 per barrel at 0633 GMT, while West Texas Intermediate (WTI) crude futures were down 8 cents at $63.17. Both contracts fell more than 2% on Tuesday after beginning the week at a two-week high.
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