The Pakistani rupee strengthened against the US dollar, appreciating 0.06% during the opening minutes of trading in the inter-bank market on Wednesday.
At 10am, the local currency was hovering at 280.23, a gain of Re0.17 against the greenback.
On Tuesday, the local unit closed at 280.40.
Globally, the yen looked punch-drunk on Wednesday after a sudden spill overnight, pressured by wide interest rate differentials between Japan and the rest of the world even as its central bank is widely expected to tighten policy next week.
The US dollar was broadly steady, and moves in other currencies were muted ahead of a key Federal Reserve policy decision later in the day, where investors are wagering on a cut in what is likely to be one of the most fractious meetings in years.
The yen was little changed at 156.82 per dollar, after a 0.6% fall towards the 157 level in the previous session despite no obvious trigger.
Against the euro, the Japanese currency similarly sank to a record low overnight and remained pinned near that level on Wednesday. The Aussie held to Tuesday’s 0.8% gain against the yen.
In the broader market, all eyes were on the Fed’s decision later in the day, which is expected to be a 25-basis-point rate cut and is almost fully priced in.
Ahead of the outcome, the euro was little changed at $1.1625, while sterling ticked 0.03% higher to $1.3301.
The dollar index, which measures the US currency against six key rivals, was firm at 99.23.
Oil prices, a key indicator of currency parity, held steady on Wednesday after falling about 1% in the previous session, as concerns over supply outpacing demand capped gains and investors watched for progress in Russia-Ukraine peace talks.
Brent crude futures were up 11 cents, or 0.2%, to $62.05 a barrel at 0241 GMT. US West Texas Intermediate crude was at $58.38 a barrel, up 13 cents, or 0.2%.
While the oil market is moving deeper into an expected glut, Russian supply remains a risk, ING analysts said in a note.
This is an intra-day update
