The rupee moved cautiously in relation to the dollar on Thursday in the process of trading, dealers said. The rupee extended overnight winning streak, picking up more three paisas versus the dollar for buying and selling at Rs 104.78 and Rs 104.80 respectively, they said.
The dollar was slightly up on the day at 114.31 yen after earlier rising as high as 114.37, its highest since March 15. The yen had gained in the previous session after US President Donald Trump abruptly fired FBI Director James Comey, raising investors' fears that the controversial move would lead to political turmoil and derail US stimulus steps and tax reform.
Such fears were not entirely vanquished. Days before he was fired, Comey told lawmakers he sought more resources for his agency's probe into possible collusion between Trump's presidential campaign and Russia to sway the 2016 US election, a congressional source said on Wednesday.
But with markets pricing in around a 90 percent chance that the economy is strong enough for the Federal Reserve to raise interest rates at its meeting next month, investors did not lose sight of fundamentals. The dollar was trading against the Indian rupee at Rs 64.525, the greenback was at 4.346 versus the Malaysian ringgit and the US currency was at 6.905 in terms of the Chinese yuan.
Interbank buy/sell rates for the taka against the dollar on Wednesday: 80.50-80.50 (previous 80.47-80.48).
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Open Bid Rs.105.70
Open Offer Rs.105.90
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Bid Rate Rs.104.78
Offer Rate Rs.104.80
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The currency dealers said the trading activity of the US dollar commenced on a negative note amidst lack of buyers' interest in the market. Consequently, it slid to Rs 105.80 and Rs 106.00 on buying and selling sides, respectively, as compared to the overnight trend of Rs 105.85 and Rs 106.05 respectively, the dealers added.
Versus the pound sterling, the local currency also followed the same suit. The pound's buying and selling rates drifted from Wednesday's closing rates of Rs 136.40 and Rs 137.00 to Rs 135.60 and Rs 136.00 respectively, they said.
The dollar opened at Rs 105.90 (buying) and Rs 106 (selling). It closed at the same. Pound Sterling opened at Rs 135 (buying) and Rs 135.50 (selling). It closed at the same rate.