The Pakistani rupee saw a marginal decline against the US dollar, depreciating 0.04% in the inter-bank market on Wednesday.

At close, the currency settled at 278.17 for a loss of Re0.12 against the greenback.

On Tuesday, the rupee had settled at 278.05, according to the State Bank of Pakistan (SBP).

Internationally, the US dollar traded close to a two-week high versus the yen on Wednesday ahead of a highly anticipated reading of US inflation that could provide clues on the pace of Federal Reserve interest rate cuts.

Investors will also watch headlines from China’s closed-door Central Economic Work Conference, which runs this week.

The anitipodean currencies got a boost at the start of the week after Beijing pledged more fiscal and monetary support for the economy next year, although that was overshadowed by Tuesday’s Reserve Bank of Australia dovish statement. RBA Deputy Governor Andrew Hauser is due to speak later on Wednesday.

The dollar eased 0.12% to 151.80 yen as of 0045 GMT, but remained close to the overnight peak of 152.18 yen, its strongest level since Nov. 27.

The dollar index, which measures the currency against the yen and five other major peers, was steady at 106.36, after rising to a one-week high of 106.63 in the previous session.

Traders currently assign 85% odds to a quarter-point rate cut by the Fed on Dec. 18.

Oil prices, a key indicator of currency parity, rose on Wednesday, with market participants expecting demand to rise in China, the world’s largest crude importer, after Beijing announced it would relax monetary policy to try to stimulate economic growth.

Brent crude futures gained 24 cents, or 0.3%, to $72.43 a barrel by 0730 GMT, while U.S. West Texas Intermediate crude futures rose 24 cents, or 0.4%, to $68.83.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 278.17

OFFER                      Rs 278.37

Open-market movement

In the open market, the PKR lost 5 paise for buying and 8 paise for selling against USD, closing at 277.26 and 279.11, respectively.

Against Euro, the PKR gained 1 rupee for buying and 1 paisa for selling, closing at 290.10 and 293.23, respectively.

Against UAE Dirham, the PKR lost 1 paisa for buying and remainedunchanged for selling, closing at 75.43 and 76.00, respectively.

Against Saudi Riyal, the PKR lost 1 paisa for buying and 5 paise for selling, closing at 73.71 and 74.25, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 277.26

OFFER                      Rs 279.11