The Pakistani rupee experienced a slight increase against the US dollar, appreciating by 0.09% during the early trading hours in the inter-bank market on Wednesday.

As of 11:55 AM, the currency was trading at 280.03, showing a gain of Re0.24 against the dollar.

On Tuesday, the rupee had finished at 280.27.

On Monday, the rupee was trading at 280, reflecting a gain of Re0.21 against the dollar.

Internationally, the US dollar faced challenges in recovering lost ground ahead of important interest rate decisions from the Bank of Japan (BOJ) and the Federal Reserve later in the day.

Overnight, Israeli airstrikes in Gaza resulted in over 400 casualties, while US President Donald Trump and Russian President Vladimir Putin failed to reach a ceasefire agreement regarding Ukraine. Additionally, Germany’s outgoing parliament approved plans for significant spending increases.

However, currency movements were mostly subdued as traders were reluctant to take new positions ahead of the day’s key central bank meetings, particularly the Fed’s.

The euro reached a five-month high of $1.0955 in the previous session and was last trading near that level at $1.0937, as investors remained optimistic that Germany’s actions could boost economic growth and enhance military spending for a new era of European defense.

The US dollar has declined nearly 4% this month, influenced by Trump’s unpredictable tariff policies and rising fears of a recession in the world’s largest economy.

The Fed’s policy decision on Wednesday will be crucial for investors seeking insight into how the central bank views Trump’s policies, their impact on the US economy, and the future rate outlook.

Fed officials are widely expected to maintain current interest rates and will also provide new economic projections after the meeting.

Oil prices, a key indicator of currency value, fell on Wednesday after Russia agreed to Trump’s proposal for a temporary halt in attacks on each other’s energy infrastructure, potentially allowing more Russian oil into global markets.

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Pakistani rupee steady against US dollar in interbank market

Pakistani rupee sees slight increase against US dollar in inter-bank market

Oil prices edge higher as dollar eases