The rupee showed its muscles against the dollar on the open market on Saturday in the process of trading, dealers said. In a single day rally, the rupee recovered Rs 1.10 in relation to the dollar for buying and selling at 98.20 and Rs 98.40, they said. The rupee, however, shed 50-paisa against the euro for buying and selling at Rs 135.50 and Rs 136.00.
Global equities fell to two-week lows, triggered by selling on Wall Street on Thursday. Wall Street stocks continued their decline on Friday, spurring a broad risk-averse environment that led to sell-offs in higher-yielding and emerging market currencies.
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Bid Rate Rs 98.20
Offer Rate Rs 98.40
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According to the currency dealers, the dollar resumed trading on a negative sign and failed to sustain due to lacking buyers' interest. At close, the dollar was ended lower at Rs 98.40 and Rs 98.65 as its buying and selling rates against Rs 98.50 and Rs 99.00 of Friday, respectively.
Likewise, the rupee remained strong and was appreciated against the pound sterling. The pound's buying and selling rates were declined from overnight closing of Rs 165.00 and Rs 165.25 to Rs 163.00 and Rs 163.25, respectively, the dealers said.
The dollar opened at Rs 98.50 (buying) and Rs 98.60 (selling) against same last rate. It did not observe further change in the second session and closed at Rs 98.50 (buying) and Rs 98.60 (selling).
Pound Sterling opened at Rs 165 (buying) and Rs 165.50 (selling) against same last rate. It closed at the same rate without further change by the end of evening session.