Rupee extends winning streak against US dollar
The Pakistani rupee maintained its upward momentum against the US dollar, appreciating 0.07% in the inter-bank market on Wednesday.
At close, the currency settled at 282.22, a gain of Re0.20.
On Tuesday, the rupee had closed at 282.42.
This marks the fifth successive session of appreciation for the rupee, supported by improved sentiment in the currency market amid an ongoing crackdown by the law enforcement agencies against illegal currency dealers and smugglers.
Last week, a Pakistan court sentenced three illegal currency dealers to five years in prison and imposed a fine of Rs1 million on each for their involvement in unlawful foreign exchange trading.
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, erased losses on Wednesday after U.S. Treasury Secretary Scott Bessent said sanctions against Russia or secondary tariffs could go up if Friday's meeting between President Donald Trump and Russian President Vladimir Putin does not go well.
Brent crude futures edged up 6 cents to $66.18 a barrel by 1243 GMT, while U.S. West Texas Intermediate crude futures were up 2 cents to $63.19.
Inter-bank market rates for dollar on Wednesday
BID Rs 282.22
OFFER Rs 282.42
Open-market movement
In the open market, the PKR gained 10 paise for buying and lost 8.93 rupees for selling against USD, closing at 283.70 and 293.83, respectively.
Against Euro, the PKR lost 2.30 rupees for buying and 2.28 rupees for selling, closing at 331.25 and 333.38, respectively.
Against UAE Dirham, the PKR gained 9 paise for buying and 6 paise for selling, closing at 77.19 and 77.49, respectively.
Against Saudi Riyal, the PKR gained 4 paise for both buying and selling, closing at 75.49 and 75.81, respectively.
Open-market rates for dollar on Wednesday
BID Rs 283.70
OFFER Rs 293.83
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