The Pakistani rupee registered marginal improvement of 0.02% against the US dollar in the inter-bank market on Wednesday.
At 10:30am, the currency was hovering at 278.33, an increase of Re0.05 against the greenback.
On Tuesday, the local unit closed at 278.38 against the greenback, according to the State Bank of Pakistan (SBP).
In a key development, the government said on Tuesday that after conclusion of an agreement with the International Monetary Fund (IMF) this month or next month, a comprehensive reforms agenda would be placed before the nation to increase the tax-to-GDP ratio to 14% as well as increase in export and investment rate.
Globally, the US dollar remained on the back foot on Wednesday after dovish comments from Federal Reserve Chair Jerome Powell sent US bond yields lower, overshadowing a strong domestic jobs report.
The euro held firm, helped by a stubbornly high local inflation reading on Tuesday. Sterling was steady ahead of Thursday’s U.K. election.
However, the yen continued to languish close to a 38-year low versus the dollar, amid the increased possibility of a second Donald Trump presidency, which could likely lead to higher long-term Treasury yields.
The dollar index, which measures the currency against the euro, sterling, yen and three other major peers, was little changed at 105.66 early in the Asian session, after a 0.14% retreat in the previous session.
Oil prices, a key indicator of currency parity, rose on Wednesday after industry data showed a bigger-than-expected draw in US crude stockpiles, while the market kept tabs on flaring tensions in the Middle East.
Brent crude futures edged up 47 cents or 0.5% to $86.71 per barrel at 0330 GMT, touching a 10-week high.
US West Texas Intermediate crude futures climbed 43 cents or 0.5% to $83.24 per barrel but was not too far off a two-month high hit earlier this week.
Both benchmarks closed lower on Tuesday as fears faded that Hurricane Beryl would disrupt production in the Gulf of Mexico.
This is an intra-day update
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