The Pakistani rupee remained largely stable against the US dollar, appreciating 0.01% during the opening hours of trading in the inter-bank market on Wednesday.

At 10:30am, the currency was hovering at 278.25, a gain of Re0.02 against the greenback.

On Tuesday, the rupee had settled at 278.27, according to the State Bank of Pakistan (SBP).

Internationally, the US dollar held steady against the yen and other major rivals on Wednesday as investors waited to see whether the Federal Reserve will deliver a hawkish cut before the Bank of Japan and other central banks meet this week.

The Fed is widely expected to deliver a 25-basis-pointinterest rate cut at the end of its two-day policy meeting on Wednesday, with markets pricing in a 97% probability, according to the CME’s FedWatch tool.

Focus will fall on policymakers’ new economic projections for the upcoming year released alongside the decision, namely how much further Fed officials think they will reduce rates in 2025.

Given the string of robust inflation and activity data, the Fed may signal a slower pace going ahead, revising projections to indicate three cuts in 2025 instead of the current four, Tony Sycamore, market analyst at IG, wrote in a note to clients.

Investors are also weighing the possible impact of promised tariffs and tax cuts by the incoming Trump administration on the Fed’s outlook.

The US dollar index, which measures the greenback against six rivals, was little changed, down 0.04% at 106.89 after hitting its highest since Nov. 26 at 107.18 on Monday.

Oil prices, a key indicator of currency parity, traded in a narrow range early on Wednesday as investors remained cautious ahead of an expected interest rate cut by the U.S. Federal Reserve.

Brent futures inched up 12 cents, or 0.16%, to $73.31 a barrel by 0134 GMT, while U.S. West Texas Intermediate crude rose 11 cents, or 0.16%, to $70.19 a barrel.

This is an intra-day update