The Pakistani rupee improved slightly against the US dollar on Wednesday, appreciating 0.05% in the inter-bank market.
At 10:15am, the currency settled at 280.60, a gain of Re0.13 against the US dollar.
On Tuesday, the currency settled at 280.73.
Internationally, the US dollar lost ground to the safe-haven yen and Swiss franc on Wednesday as the imminent imposition by the US of 104% tariffs on China spooked world equity markets and sent the Chinese yuan to record lows.
President Donald Trump showed no sign of backing away from the new increase of 50% on China, which goes into effect in just a few hours, accusing Beijing of manipulating the yuan to offset the levies.
The US dollar has already reached an all-time top on the yuan offshore at 7.4288, breaching the previous high at 7.3765, and all eyes are on China’s central bank to see whether it allows a further easing at its daily fix.
Worries about a US downturn were pressuring the dollar elsewhere as markets returned to pricing in more rate cuts from the Federal Reserve.
Fed fund futures jumped in early Asian trade to imply around 111 basis points of cuts this year, compared to 92 basis points early on Tuesday.
Fresh losses in US stock futures and heavy selling in longer-dated US Treasuries sparked demand for safe haven currencies, notably the yen and Swiss franc.
Oil prices, a key indicator of currency parity, dropped to their lowest in more than four years on Wednesday on looming demand concerns fuelled by an escalating tariff war between the US and China, the world’s two biggest economies, and a rising supply outlook.
Brent futures lost $2.38, or 3.79%, to $60.44 a barrel as of 0423 GMT. US West Texas Intermediate crude futures fell $2.46, or 4.13%, to $57.12. Both contracts touched their lowest level since February 2021.
This is an intra-day update