The rupee posted fresh gains in terms of the dollar and euro on the money market on Friday in the process of trading, dealers said. The rupee managed to gain 12-paisa against the dollar for buying and selling at Rs 104.53 and Rs 104.56 respectively, they said.
In the final Asian trade, the dollar fell on Friday headed for steep weekly losses, as investors braced for another day of catering sentiment and waited to see whether Japan would act to stem its currency's rise. Japanese markets were closed for a public holiday on Thursday, when the dollar fell as low as 110.985 yen, its lowest level since October 2014. It last stood at 112.05 yen, down 0.3 percent and on track to shed over 4 percent for the week.
The yen's recent rapid ascent followed the Bank of Japan's move to adopt negative interest rates on Jan. 29, under which banks have to pay interest on certain deposits held at the BOJ. The dollar hit a high of 121.70 yen, before risk aversion, slowing Chinese growth and falling crude oil prices sent investors into perceived safe-haven currencies. The dollar was trading against the Indian rupee at Rs 68.43, the greenback was at 4.1830 versus the greenback and the US currency was at 6.5755 against the Chinese yuan.
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Open Bid Rs 104.53
Open Offer Rs 104.56
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Bid Rate Rs 105.90
Offer Rate Rs 106.10
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The dollar hardly began well and remained under pressure in the absence of buyers' interest and finally declined from the overnight closing of Rs 106.50 and Rs 106.70 to Rs 106.00 and Rs 16.40, on buying and selling.
The rupee also showed some strength against the pound sterling that was purchased and sold at Rs 152.50 and Rs 153.20 as compared with the Thursday closing of Rs 153.00 and Rs 153.70.