The Pakistani rupee registered marginal improvement against the US dollar, appreciating 0.07% during the opening hours of trading in the inter-bank market on Wednesday.
At 10:15am, the rupee was hovering at 281.65, a gain of Re0.21 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, were little changed on Wednesday, after falling in the previous session, as the market awaits massive new US tariffs on India, the world’s third-largest crude consumer, in response to its purchases of Russian supply.
The US is set to impose additional tariffs of 25% on Indian exports at 12:01 a.m. EDT (0401 GMT) on Wednesday, taking them to 50% overall and among the highest levied by Washington.
This is an intra-day update
