The rupee moved cautiously in terms of the dollar on the money market on Wednesday in the process of trading, dealers said. The rupee shed one paisa versus the dollar for buying and selling at Rs 104.82 and Rs 104.83 respectively.
In the third Asian trade, the dollar held gains near a 3-1/2-week high after Federal Reserve Chair Janet Yellen signalled a faster pace of US interest rate hikes.
Yellen told the US Senate Banking Committee the central bank will likely need to raise interest rates at one of its upcoming meetings, although she expressed caution amid considerable uncertainty over economic policies under President Donald Trump's administration.
The dollar index, which measures the greenback against its six major peers, was last up 0.1 percent at 101.26. The index rose to 101.38 on Tuesday following Yellen's remarks, the highest since Jan. 20. "Investors didn't expect Yellen to be that hawkish, so the dollar gained," said Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank.
"There are no big factors preventing the Fed from raising rates in March. Unless the emerging markets become volatile or the US economic data shows weakness, the March rate hike is highly plausible," Sera added. The dollar was trading against the Indian rupee at Rs 66.95, the greenback was available at 4.4470 and the US currency was at 6.8703 in terms of the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Wednesday 79.30-79.30 (previous 79.23-79.25).
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Open Bid Rs.107.10
Open Offer Rs.107.30
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Bid Rate Rs.104.82
Offer Rate Rs.104.83
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According to currency dealers, the greenback resumed trading on its last closing of Rs 107.30 and Rs 107.50 as its buying and selling rates, respectively. Due to the lack of buyers' interest, it declined to Rs 107.25 on buying counter. However, no change in its value took place as it sustained its last closing trend of Rs 107.50 on selling counter, respectively, they added.
Furthermore, the Pakistani rupee showed strength as it registered appreciation versus the pound sterling. The pound's buying and selling rates slid from the Monday's closing rates of Rs 133.50 and Rs 134.30 to Rs 132.65 and Rs 133.65, respectively, they said.
The dollar opened at Rs 108.10 (buying) and Rs 108.20 (selling) against the rupee and dollar closed at the same levels.
Pound Sterling opened at Rs 130 (buying) and Rs 131.50 (selling).It closed at Rs 130 (buying) and Rs 131.50 (selling).