The Pakistani rupee registered a marginal decline against the US dollar, depreciating 0.03% in the inter-bank market on Wednesday.
At close, the currency settled at 279.26 for a loss of Re0.09 against the greenback, according to the State Bank of Pakistan (SBP).
The rupee had closed at 279.17 on Tuesday.
Internationally, the US dollar stepped back from its tariff-driven rally, leaving it below recent peaks as traders waited on US inflation data and news on the broader trade front.
Early on Wednesday, the US dollar was 0.3% firmer and above 153 yen for the first time in a week, but elsewhere it was nursing modest losses and traded at $1.0357 per euro .
Overnight the European Union, Mexico and Canada condemned Donald Trump’s decision to impose 25% tariffs on steel and aluminium imports and the European Commission head Ursula von der Leyen said there would be counter-measures.
Federal Reserve Chair Jerome Powell gave the first part of his twice-yearly testimony to Congress and stuck to the view that the Fed is in no hurry to lower interest rates.
Investors have assumed US tariffs would be positive for the US dollar, by reshaping trade flows and encouraging other countries to weaken their currencies to offset the taxes.
However, analysts say inflation implications are less clear cut and that it is hard to say where the chips will fall as tariffs and retaliatory actions take effect – leaving a market that was already heavily long the dollar unwilling to push it higher, for now.
Oil prices, a key indicator of currency parity, fell on Wednesday as an industry report showed an increase in US crude stockpiles and tariff worries weighed on sentiment, paring back three days of gains driven by increasing Middle East tensions and intensifying sanctions.
Brent futures fell 36 cents, or 0.47%, to $76.64 a barrel by 0130 GMT, while US West Texas Intermediate (WTI) crude declined 37 cents, or 0.5%, to $72.95 a barrel.
The drops snapped a three-day streak of gains for prices with Brent climbing 3.6% while WTI rose 3.7%.
Inter-bank market rates for dollar on Wednesday
BID Rs 278.26
OFFER Rs 278.46
Open-market movement
In the open market, the PKR lost 4 paise for buying and 2 paise for selling against USD, closing at 278.80 and 281.06, respectively.
Against Euro, the PKR lost 1.15 rupee for buying and 1.08 rupee for selling, closing at 287.90 and 290.70, respectively.
Against UAE Dirham, the PKR lost 2 paise for buying and remained unchanged for selling, closing at 75.98 and 76.54, respectively.
Against Saudi Riyal, the PKR lost 4 paise for buying and 1 paisa for selling, closing at 74.23 and 74.77, respectively.
Open-market rates for dollar on Wednesday
BID Rs 278.80
OFFER Rs 281.06
American Dollar Exchange Rate