A rising trend was seen on the money market on Wednesday as the rupee moved up versus the dollar in the process of trading, dealers said. The rupee traded versus the dollar for buying and selling at Rs 104.89 and Rs 104.90 respectively.
The dollar index against a group of major currencies was 0.05 percent lower at 97.699.
It had hit a one-month high of 97.871 on Tuesday as expectations that the US Federal Reserve, which hiked interest rates last week, would tighten policy again in 2017.
The greenback's advance, however, stalled as the dollar-supportive bounce in US Treasury yields was cut short overnight.
Following a big drop in oil prices, the 10-year Treasury note yield fell sharply on Tuesday, reversing a large portion of the gains it made after the Fed left the door open for another rate increase this year.
"Lower crude prices weaken inflationary pressures and in turn arrest the rise in US yields," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.
The dollar was trading against the Indian rupee at Rs 64.630, the US currency was at 4.287 in terms of the Malaysian ringgit and the greenback was at 6.830 versus the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Wednesday: 80.56-80.60 (previous 80.56-80.60).

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Open Bid       Rs.105.80
Open Offer     Rs.106.00
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Bid Rate       Rs.104.89
Offer Rate     Rs.104.90
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