The Pakistani rupee posted a marginal gain against the US dollar on Wednesday, closing slightly stronger in the interbank market as global currency dynamics shifted ahead of major policy decisions in the United States.

The local unit settled at 279.97 per dollar, appreciating by Re0.03 compared to the previous close of 280.00.

In global markets, the US dollar rebounded toward a one-month high during early Asian trade after US inflation data came in broadly in line with expectations, reinforcing the view that the Federal Reserve is unlikely to cut interest rates later this month despite heightened political pressure from the White House.

The US Dollar Index was last up 0.3% at 99.18, clawing back losses from earlier in the week following President Donald Trump’s public criticism of Fed Chair Jerome Powell.

Fresh data on Tuesday showed US consumer prices rose 0.3% in December, driven by housing and food costs, after distortions from a government shutdown temporarily eased inflation in November. The release strengthened expectations of a policy hold, with futures markets pricing a 95.6% probability that the Fed will keep rates unchanged at the conclusion of its January meeting, according to CME’s FedWatch tool.

Currency volatility remained relatively muted ahead of an anticipated Supreme Court decision on the legality of Trump’s emergency tariff measures.

Meanwhile, oil a key factor in emerging-market currency performance eased slightly after recent gains. Brent crude traded at $65.27 per barrel, while WTI stood at $60.92, amid mixed signals from Venezuelan export flows and concerns over supply disruptions linked to unrest in Iran.