The US dollar rate in Pakistan further increased by Re0.5 (5 paisa) against Pakistani rupee to Rs278.77 in the interbank market on Wednesday (Jan 15) as per the State Bank of Pakistan (SBP).

The rupee closed at 278.72 on Tuesday, as reported by the State Bank of Pakistan (SBP).

Globally, the US dollar’s impressive rally paused on Wednesday as traders awaited the release of a key US consumer inflation report later in the day, prompting caution and limiting new market positions.

In the early Asian trading session, the greenback steadied after an overnight decline, retreating from a two-year high against a basket of currencies reached earlier in the week. This pullback was partly driven by a softer-than-expected US producer price index, which eased Treasury yields from their recent peaks.

The euro, meanwhile, traded at $1.0301, recovering slightly from a multi-year low against the dollar.

Leading up to former President Trump’s inauguration on January 20, investor sentiment was particularly sensitive to policy-related developments, with expectations of inflationary pressures in the US economy shaping market behavior.

The anticipation of tariffs and reduced expectations of Federal Reserve rate cuts have contributed to higher Treasury yields, providing support for the dollar.

Against a basket of currencies, the US dollar traded slightly higher at 109.23 but remained below Monday’s peak of 110.17, its strongest level since November 2022.