The rupee did not show any change in relation to the dollar on the money market on Tuesday in the process of trading, dealers said. The rupee held its overnight levels in terms of the dollar for buying and selling at Rs 104.85 and Rs 104.86 respectively, they said.
In the second Asian trade, the dollar drifted on Tuesday, with its earlier advance halted by investors taking a wait-and-see approach ahead of US President Donald Trump's closely-watched Congressional address later in the day. The dollar index was little changed at 101.150 against a basket of key currencies, after posting a modest gain the previous day, when it initially went as low as 100.690.
The US currency rose overnight after Trump sought a "historic" increase in military spending, whetting dollar bulls' appetite before the president's speech to Congress. "The talk regarding military and infrastructure spending raised expectations towards Trump's speech to the Congress later today, lifting the dollar and Treasury yields," said Shin Kadota, senior forex strategist at Barclays.
The dollar index rallied to a 14-year high soon after Trump won the US elections in November, boosted by hopes that he would introduce large fiscal stimulus and re-flationary plans. But the greenback has sagged lately with the Trump administration yet to hammer out clear specifics, notably on tax reform, and focus has naturally turned to the president's first major address to Congress.
The dollar was trading against the Indian rupee at Rs 66.78, the greenback was at 4.4370 in terms of the Malaysian ringgit and the US currency was available at 6.8700 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday: 79.37-79.37 (previous 79.36-79.37).
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Open Bid Rs.107.00
Open Offer Rs.107.20
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Bid Rate Rs.104.85
Offer Rate Rs.104.86
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According to currency dealers, the US dollar resumed trading on its overnight closing of Rs 107.15 and Rs 107.40 as its buying and selling rates, respectively. Following the lack of buyers' interest in the market, it marginally slid to Rs 107.10 on buying counter. However, in the presence of selling spree, it appreciated by 10-paisa and ended at Rs 107.50 on selling counter, respectively, they added.
Moreover, the local currency depreciated by 20-paisa on buying side while it stayed unchanged on selling side against the pound sterling. The British currency was bought and sold at Rs 132.40 and Rs 133.20 against the Monday's closing rates of Rs 132.20 and Rs 133.20, respectively, the dealers said.
The dollar opened at Rs 108.10 (buying) and Rs 108.20 (selling) and it closed at the same rate.
Pound Sterling opened at Rs 130 (buying) and Rs 131.50 (selling). It closed at the same rate.