The rupee improved slightly against the dollar on the money market on Friday in the process of trading, dealers said. The rupee, however, inched down by one paisa in terms of the dollar for buying and selling at Rs 104.85 and Rs 104.86 respectively, they said.
The single currency was a shade firmer at $1.0434, having rebounded only modestly from a nearly 14-year low of $1.0350 set on Tuesday. The dollar index was marginally higher at 103.05 and within striking distance of the week's 103.65 peak. Data out on Thursday had shown US economic growth was quicker than initially forecasted in the third quarter, but disappointing numbers on personal spending and income pointed to a slowdown in the present quarter.
The dollar rally has been fuelled in part by bets that the incoming Trump Administration and a Republican-controlled Congress would slash taxes and boost debt-funded spending, pushing up inflation and bond yields.
The dollar was trading against the Indian rupee at Rs 67.87, the US currency was available at 4.4770 versus the Malaysian ringgit and the greenback was at 6.9499 in terms of the Chinese yuan.
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Open Bid Rs. 108.20
Open Offer Rs. 108.50
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Bid Rate Rs. 104.85
Offer Rate Rs. 104.86
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The US dollar commenced trading on its overnight closing of Rs 108.15 and Rs 108.60 as its buying and selling rates, respectively. Following the lack of buyer' interest, it further ended higher at Rs 108.30 on buying counter. However, its selling rate did not observe any change which prevailed till close of trading at Rs 108.60 on selling counter, said the local currency dealers.
Moreover, the local currency remained strong for the second consecutive day versus the pound sterling. The pound's buying and selling rates further declined from Thursday's closing rates of Rs 132.60 and Rs 133.70 to Rs 131.80 and Rs 132.80, respectively, they added.