The Pakistani rupee maintained its upward momentum against the US dollar, appreciating 0.06% during the opening hours of trading in the inter-bank market on Tuesday.
At 10:20am, the currency was hovering at 282.28, a gain of Re0.17.
On Monday, rupee closed at 282.45.
Internationally, the US dollar held steady on Tuesday, with markets braced for a key consumer inflation report later in the day that could shape expectations for Federal Reserve interest rate cuts.
The Australian dollar was steady hours before a policy decision by the Reserve Bank of Australia.
The US dollar index – which measures the currency against six counterparts, including the euro and yen – was steady at 98.497 as of 0046 GMT, after advancing 0.5% over the past two sessions.
Prior to that, the dollar had retreated as US President Donald Trump’s dovish-leaning pick to replace a Fed governor, and similarly inclined potential candidates for chairman, led traders to increase easing bets.
In addition, Fed officials have sounded increasingly uneasy about the labour market, signalling their as soon as September.
Cooling inflation could cement bets for a reduction next month, but if signs emerge that Trump’s tariffs are fuelling price pressures, that might keep the central bank on hold for now.
Traders currently put the odds of a quarter-point cut on September 17 at about 89%.
The greenback rose 0.1% to 148.28 yen on Tuesday. The euro was flat at $1.1615.
Oil prices, a key indicator of currency parity, rose on Tuesday as the United States and China extended a pause on higher tariffs, easing concerns that an escalation of their trade war would disrupt their economies and crimp fuel demand in the world’s two largest oil consumers.
Brent crude futures gained 26 cents, or 0.39%, to $66.89 a barrel by 0015 GMT, while US West Texas Intermediate crude futures rose 22 cents, or 0.34%, to $64.18.
This is an intra-day update
