The Pakistani rupee maintained its upward trajectory against the US dollar, appreciating 0.1% during the opening hours of trading in the inter-bank market on Wednesday.
At 10am, the currency was hovering at 282.78, a gain of Re0.27.
On Tuesday, the currency settled at 283.05.
Pakistan’s crackdown on black market dollar trading has strengthened the rupee, but traders say under-the-counter deals have swiftly shifted to smartphones and home deliveries instead.
Many unlicensed exchange shops have been shut since July 22, when the military spy agency summoned representatives of the sector to explain the US dollar’s rising cost in the open market. Soon after, raids were carried out by the Federal Investigation Agency, which tackles financial crime and smuggling.
Since the crackdown began, the rupee has rebounded from a sharp fall against the dollar earlier in July.
Internationally, the euro steadied near its lowest in a month on Wednesday, nursing steep losses this week as investors counted the cost of the US-EU trade pact and looked ahead to policy meetings from the Federal Reserve and the Bank of Japan.
US and Chinese officials agreed to seek an extension of their 90-day tariff truce on Tuesday, following two days of what both sides described as constructive talks in Stockholm.
No major breakthroughs were announced, and US officials said it was up to President Donald Trump to decide whether to extend a truce that expires on August 12.
The euro was 0.12% higher at $1.1558 in early trading after dropping for the first two days of the week and hitting a one-month low of $1.15185 on Tuesday.
The single currency has benefited this year from the dollar losing its lustre due to Trump’s erratic trade policies, prompting investors to look for alternatives.
The Japanese yen firmed a bit to 148.20 per dollar.
That left the dollar index, which measures the US currency against six others, at 98.815, hovering near a one-month high.
The index is set to record its first month of gains this year.
Oil prices, a key indicator of currency parity, ticked up in early trading on Wednesday after rising more than 3% in the previous session as potential supply shortages came into focus after US President Donald Trump gave Moscow an abbreviated deadline toward ending the war in Ukraine.
Brent crude futures rose 14 cents, or 0.19%, to $72.65 a barrel by 0048 GMT while US West Texas Intermediate crude climbed 2 cents, or 0.03%, to $69.23 a barrel.
Both contracts had settled at their highest since June 20 on Tuesday.
This is an intra-day update
