The rupee continued erosion against the dollar for the third day on Wednesday in the process of trading activity, dealer said. Since, the week started, the national currency started showing its weakness versus the dollar. On Monday, the State Bank of Pakistan (SBP) devalued the rupee by 3.8 percent against the dollar to give a boost to the exports and to avert a balance of payments crisis.
In the inter-bank market, the rupee lost 50 paisas in terms of the dollar for buying at Rs 120.25 and it also shed 25 paisas for selling at Rs 120.50, they said.
In the open market, the local currency dropped by 20 paisas at Rs 121.20 and Rs 121.70, dealers said. The rupee was unchanged against the euro for buying and selling at Rs 140.50 and Rs 142.50 respectively, they said.
In the third Asian trade, the dollar reached a three-week high against the yen and stood tall against the euro on Wednesday ahead of a Federal Reserve policy meeting that could give clues on how many more US rate hikes there will be this year.
The Fed concludes its two-day policy meeting later on Wednesday, at which it is widely expected to hike rates for the second time this year.
Market focus is on whether the Fed signals tightening policy four times in 2018, from the three times indicated earlier this year, after the world's largest economy has expanded steadily.
The dollar index against a basket of six major currencies inched up 0.09 percent to 93.888, after rising 0.25 percent the previous day.
The dollar was 0.25 percent higher at 110.660 yen after brushing 110.68, its highest since May 23.
The dollar was available against the Indian rupee at Rs 67.565, the greenback was at 3.994 in terms of the Malaysian ringgit and the US currency was at 6.403 in relation to the Chinese yuan.

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Open Bid       Rs.121.20
Open Offer     Rs.121.70
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Bid Rate       Rs.120.25
Offer Rate     Rs.120.50
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