The Pakistani rupee maintained its upward momentum against the US dollar, appreciating 0.16% during the opening hours of trading in the inter-bank market on Wednesday.
At 10am, the currency was hovering at 281.97, a gain of Re0.45.
On Tuesday, rupee closed at 282.42.
Internationally, the US dollar weakened on Wednesday after a tame reading on US inflation bolstered expectations of a Federal Reserve rate cut next month, with President Donald Trump’s attempts to extend his grip over US institutions also undermining the currency.
US consumer prices increased marginally in July, data showed on Tuesday, in line with forecasts and as the pass-through from Trump’s sweeping tariffs to goods prices has so far been limited.
Investors eyeing imminent Fed cuts cheered the data and moved to price in a 98% chance the central bank would ease rates next month, which in turn dragged on the dollar.
Against the yen, the dollar was last 0.05% lower at 147.76, while the euro was steady at $1.1676, having risen 0.5% in the previous session.
The dollar index last stood at 98.08, after falling roughly 0.5% on Tuesday.
US Treasury yields similarly fell on the heightened rate cut expectations, with the two-year yield last at 3.7371%, having swung in a range of nearly 10 basis points on Tuesday.
The benchmark 10-year yield was little changed at 4.2965%.
Oil prices, a key indicator of currency parity, were little changed on Wednesday after falling in the previous session after an industry report showed US crude stockpiles climbed last week illustrating the end of the seasonal summer demand period is nearing.
Brent crude futures gained 3 cents to 66.15 a barrel at 0102 GMT after dropping 0.8% in the previous session. US West Texas Intermediate crude futures fell 3 cents to $63.14 after declining 1.2%.
This is an intra-day update
