The Pakistani rupee registered marginal gain against the US dollar, appreciating 0.01% in the inter-bank market on Wednesday.
At close, the local currency settled at 279.42, a gain of Re0.03 against the greenback.
On Tuesday, the local unit closed at 279.45.
Globally, the dollar rallied to a three-month high in early trading in Asia on Wednesday, with investors retreating from the euro as the growing conflict in the Middle East sparked fears of a sustained rise in energy prices.
The euro traded down 0.3% at $1.1581, extending losses into a third day after earlier hitting its weakest since late November.
Financial markets resumed their selloff on Wednesday as growing fears of a surge in inflation rippled across stocks and bonds after Israeli and US forces pounded targets across Iran, prompting a rush for cash among investors.
The US dollar index, which measures the greenback’s strength against a basket of six currencies, was up 0.2% at 99.284, its strongest since November 28.
Against the yen, the dollar was flat at 157.68 yen.
Moreover, oil remained within sight of multi-month highs on Wednesday as the US-Israeli war on Iran disrupted Middle East energy flows, although prices pared gains after a report that Iranian operatives sought talks with the US to end the conflict.
Brent crude was up 27 cents, or 0.3%, to $81.67 per barrel at 1438 GMT, after hitting a high of $84.48 and a low of $80.30 earlier in the session. On Tuesday, Brent closed at its highest since January 2025.
US West Texas Intermediate crude was down 53 cents, or 0.7%, to $74.03, a day after settling at its highest since June.
Inter-bank market rates for dollar on Wednesday
BID Rs 279.42
OFFER Rs 279.62
Open-market movement
In the open market, the PKR lost 18 paise for buying and gained 5 paise for selling against USD, closing at 279.38 and 280.45, respectively.
Against Euro, the PKR gained 53 paise for buying and 99 paise for selling, closing at 323.69 and 327.40, respectively.
Against UAE Dirham, the PKR lost 16 paise for buying and 8 paise for selling, closing at 75.79 and 76.85, respectively.
Against Saudi Riyal, the PKR lost 9 paise for buying and 12 paise for selling, closing at 74.00 and 75.03, respectively.
Open-market rates for dollar on Wednesday
BID Rs 279.38
OFFER Rs 280.45