Bears dominated the money market as the dollar touched an important level of 86 in the interbank deals in the post-budget session on Saturday, money experts said. The rupee drifted lower against dollar, shedding 10 paisa for buying and selling at 85.95 and 86.00, they said.
The single currency surged after the European Union, the European Central Bank and the International Monetary Fund said the next tranche of international aid for Greece should be available in July.
Add in a European Central Bank policy meeting, where ECB President Jean-Claude Trichet is expected to signal a July interest-rate hike by using the term "vigilance" in reference to monitoring inflation, and dollar has little upside.
"The next few weeks will see broad choppy ranges," said Gareth Sylvester, senior currency strategist at San Francisco-based Klarity FX. "So many questions remain."
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Open Buying Rs 86.15
Open Selling Rs 86.35
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Buying Rs 85.95
Selling Rs 86.00
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According to the currency dealers, the dollar resumed trading at last day closing of Rs 86.10 and Rs 86.35, as its buying and selling rates, respectively. However, at the end of trading, the dollar could not sustain and declined to Rs 86.00 and Rs 86.30 on buying and selling counters, respectively.
On the contrary, the rupee remained under pressure and was depreciated against the pound sterling. The pound's buying and selling rates were improved to Rs 141.00 and Rs 141.60, as compared to Friday closing of Rs 140.30 and Rs 141.00, respectively, the dealers added.
The dollar resumed trading at Rs 85.60 (buying) and Rs 85.80 (selling) against same last rates. It did not observe further change in the evening session and closed at Rs 85.60 (buying) and Rs 85.80 (selling).
Pound sterling opened at Rs 136.30 (buying) and Rs 136.70 (selling) against same previous rates. It did not witness any change in the evening session and closed at Rs 136.30 (buying) and Rs 136.70 (selling).