Pakistani rupee slightly declined against the US dollar, depreciating 0.04% during the opening hours of trading in the inter-bank market on Wednesday.
At 10:40am, the currency was hovering at 284.78, a loss of Re0.11.
On Tuesday, the currency settled at 284.67.
Internationally, the US dollar rose alongside Treasury yields on Wednesday, which in turn kept pressure on the yen after the latest US inflation report showed signs that President Donald Trump’s tariffs were beginning to feed into prices.
Rising prices on goods as varied as coffee, audio equipment and home furnishing pulled the inflation rate higher in June, with substantial increases in prices of the heavily imported items.
That pushed the dollar and bond yields higher as investors pared back expectations of Federal Reserve interest rate cuts this year.
The jump in the dollar was most apparent against the yen, as it knocked the Japanese currency to a four-month low of 149.03 overnight. The dollar last traded at 148.90 yen.
The euro and sterling similarly languished near three-week lows hit in the previous session, and last bought $1.1608 and $1.3394, respectively.
Traders are now pricing in roughly 43 basis points worth of Fed easing by December, down from just above 50 bps at the start of the week.
US Treasury yields stayed elevated on Wednesday, with the benchmark 10-year yield scaling a one-month top of 4.4950%.
That kept the US dollar supported against a basket of currencies, as it hovered near a one-month high at 98.60.
Oil prices, a key indicator of currency parity, rose on Wednesday, boosted by expectations of firm summer demand in the world’s two largest consumers, the United States and China, though gains were capped by analysts’ caution about the wider economy.
Prices have seen-sawed in a tight range as signs of steady demand from an increase in travel during the Northern Hemisphere summer have competed with concerns that US tariffs on trading partners will slow economic growth and fuel consumption.
Brent crude futures rose 13 cents, or 0.2%, to $68.84 a barrel by 0411 GMT. US West Texas Intermediate crude futures were up 25 cents, or 0.4%, at $66.77.
This is an intra-day update
