The rupee managed to get rid of overnight weakness against the dollar on the money market on Wednesday in the process of trading, dealers said. The rupee picked up six-paisa versus the dollar for buying at Rs 104.84 and it also gained 14-paisa for selling at Rs 104.86, they said.
In the third Asian trade, the dollar came off a near one-week high versus a basket of major currencies on Wednesday, but its losses were limited as the market counted down the hours to a likely hike in US interest rates. The Federal Reserve is widely expected to deliver its first rate increase in nearly a decade later in the day.
But after more than a year of anticipation, investors are more eager to know how quickly the central bank will tighten following the initial rate adjustment. The euro edged up 0.1 percent to $1.0941. On Tuesday, the euro slipped around 0.6 percent, retreating from a six-week high of $1.1060. The dollar was trading against the Indian rupee at Rs 66.88, the greenback was at 4.3060 in terms of the Malaysian ringgit and the US currency was available at 6.4657 in relation to the Chinese yuan.
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Open Bid Rs.106.00
Open Offer Rs.106.25
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Bid Rate Rs.104.84
Offer Rate Rs.104.86
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According to the currency dealers, the dollar resumed trading on a depressed note and remained under pressure in the absence of buyers' interest. At close, the dollar ended lower at Rs 106.20 and Rs 106.80 on buying and selling side against the overnight closing of Rs 106.70 and Rs 107.00, respectively, the dealers said.
Similarly, the rupee showed strength and appreciated against the pound sterling as its rate declined from the Wednesday closing of Rs 160.50 and Rs 161.30 on buying and selling counter to Rs 159.80 and Rs 160.50, respectively, they added.
The dollar opened at Rs 106 (buying) and Rs 106.20 (selling) against same last rate. It did not observe further change in the second session and closed at Rs 106 (buying) and Rs 106.20 (selling). Pound Sterling opened at Rs 158 (buying) and Rs 158.50 (selling) against same overnight value. It did not observe further change in the evening session and closed at Rs 158 (buying) and Rs 158.50 (selling).