The Pakistani rupee registered marginal decline against the US dollar, depreciating 0.04% during the opening hours of trading on Wednesday.
At 10:45am, the local currency settled at 282.33, a loss of Re0.12 against the greenback.
On Tuesday, the rupee settled at Rs282.21 against the US dollar.
Internationally, the US dollar and China’s yuan were steady on Wednesday as teams from US and China concluded trade talks in London, hinting at a thaw in a damaging trade war between the world’s two largest economies but offering scant detail.
The countries’ officials agreed on a framework based on a trade truce reached last month in Geneva that would resolve China’s export restrictions on rare earth minerals and magnets, and remove some US export restrictions that were recently put in place.
The US dollar firmed slightly in the wake of the news, pushing the euro down 0.07% to $1.141 and steadying at 144.91 yen.
China’s onshore yuan was little changed at 7.1873 per dollar, while the offshore unit stood at 7.1875.
An index that measures the greenback against six other currencies inched up 0.1% and last stood at 99.132.
However, analysts noted that any newly agreed tariffs would still be higher than they were late last year and would thus be a drag on the global economy.
Also keeping investors cautious, a federal appeals court allowed President Donald Trump’s most sweeping tariffs to remain in effect, while it reviews a lower-court decision blocking them on grounds that he had exceeded his authority by imposing them.
Much of the year has been dominated by investors’ unease over Trump’s erratic policies. Despite a bounce back in US stocks, the erosion of investor confidence is clearly reflected in the dollar, which is down more than 8% so far this year.
Oil prices, a key indicator of currency parity, softened in Asian trade on Wednesday as markets assessed the outcome of US-China trade talks, yet to be reviewed by President Donald Trump, with weak oil demand from China and OPEC+ production increases weighing on the market.
Brent crude futures declined 19 cents, or 0.3%, to trade at $66.680 a barrel, while US West Texas Intermediate crude fell 16 cents, or 0.3%, to $64.82 at 0318 GMT.
This is an intra-day update
