The Pakistani rupee saw a slight gain against the US dollar, appreciating 0.08% during Tuesday’s opening hours of trading in the inter-bank market.
At 10am, the currency was hovering at 281.03, a gain of Re0.22 against the greenback.
On Monday, the local unit closed at 281.25.
Internationally, the Japanese yen weakened to a two-month low against the US dollar on Tuesday as attention in Japan turned to who may join the cabinet of fiscal dove Sanae Takaichi after her party leadership victory.
Takaichi was considered to be the most dovish among the five candidates in Japan’s Liberal Democratic Party race on Saturday to replace hawkish Prime Minister Shigeru Ishiba.
The euro remained on a fragile footing following the resignation of France’s prime minister and European Central Bank officials said a rate cut may be necessary.
Traders will be on watch for speeches from Federal Reserve policymakers later in the day as a US government shutdown squelches other data signals.
The dollar index, which measures the greenback against a basket of currencies, added 0.05% to 98.17.
The euro was little changed at $1.1705.
The White House on Monday backed off President Donald Trump’s assertion that government employees were already being laid off due to the shutdown, but warned job losses could result as the standoff looked set to stretch into a seventh day.
Market attention is now focused on the Fed itself for signs of the timing and extent of more easing.
The Fed is widely expected to cut rates by 25 basis points at its October 28-29 meeting, following data that showed a weakening labor market.
Oil prices, a key indicator of currency parity, were steady on Tuesday, with sentiment toward a smaller-than-anticipated OPEC+ output hike dulled by weakening global demand and the potential for a supply glut.
Brent crude futures gained 1 cent, or 0.02%, to $65.48 a barrel by 0014 GMT. US West Texas Intermediate crude was unchanged at $61.69 a barrel.
Both contracts settled more than 1% higher in the previous session.
This is an intra-day update
