The Pakistani rupee recorded marginal improvement against the US dollar, appreciating 0.04% in the inter-bank market during the opening hours of trading on Thursday.
At 10:30am, the currency was hovering at 279.15 for a gain of Re0.11 against the greenback.
The rupee had closed at 279.26 on Wednesday.
Internationally, the US dollar held near a one-week high against the Japanese yen on Thursday after a hotter-than-expected consumer prices reading, while the euro was shored up by news that Washington aims to begin talks with Russia to end the war in Ukraine.
US President Donald Trump also said he would soon impose reciprocal tariffs on every country that charges duties on US imports, keeping alive fears of a widening global trade war that threatens to accelerate US inflation.
Against the yen, the US dollar was down 0.06% at 154.33, not far off Wednesday’s high of 154.80 hit as US Treasury yields climbed following inflation reading.
Market players are increasing bets the Federal Reserve will hold interest rates higher for longer, pricing in roughly 28 basis points worth of rate cuts for this year, versus around 37 basis points before the data.
The US dollar index, which measures the greenback against the yen, euro, and other peers, was 0.03% lower at 107.88, after touching a one-week high of 108.52 in the previous session.
Oil prices, a key indicator of currency parity, fell on Thursday on expectations a potential peace deal between Ukraine and Russia would mean the end of sanctions that have disrupted supply flows and Trump’s intention to introduce reciprocal tariffs stoked inflation jitters.
Brent futures were down 55 cents, or 0.73%, at $74.63 a barrel by 0141 GMT while U.S. West Texas Intermediate (WTI) crude dropped 52 cents, or 0.73%, to $70.85.
Brent and WTI fell more than 2% on Wednesday after Trump said Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy expressed a desire for peace in separate phone calls with him, and Trump ordered top US officials to begin talks on ending the war in Ukraine.
This is an intra-day update
