The rupee continued slide versus the dollar on the money market on Wednesday in process of trading, dealers said. The rupee shed five paisas in relation to the dollar for buying Rs 128.45 while it did not show any change for selling at Rs 128.50, they added.
In the third Asian trade, the dollar rose across the board on Wednesday, climbing to a six-month high against the yen, after Federal Reserve Chairman Jerome Powell gave an upbeat outlook for the US economy and reinforced views that the Fed was on track to steadily hike interest rates.
In closely watched congressional testimony on Tuesday, Powell said he saw the United States on course for years more of steady growth, while largely discounting the risks associated with a trade war.
The dollar was up 0.05 percent at 112.955 yen after going as high as 113.08, its strongest since January 9.
The euro dipped 0.05 percent to $1.1653 after losing 0.4 percent overnight. An easing of risk aversion was reflected on Wall Street, which rose overnight and supported Asian stocks on Wednesday after Powell's optimistic analysis of the US economy.
"The dollar stands to gain further, particularly against the yen, with risk aversion in the equity markets petering out," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo.
The dollar was trading against the Indian rupee at Rs 68.560, the greenback was available versus the Malaysian ringgit at 4.055 and the US currency was at 6.710 in terms of the Chinese yuan.
Inter bank buy/sell rates for the taka against the dollar on Wednesday: 83.75-83.75 (Previous 83.75-83.75).
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Open Bid Rs 128.50
Open Offer Rs 129.00
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Bid Rate Rs.128.45
Offer Rate Rs.128.50
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According to currency dealers, the short supply phenomenon of the greenback prevailed for another day in the currency market which helped its further appreciation for buying and selling at Rs 128.20 and Rs 129.00 as compared to the overnight closing trend of Rs 127.50 and Rs 128.80 respectively.
The national currency, however, showed stability as it recovered its earlier losses versus the pound sterling. The pound's buying and selling rates slid from Tuesday's closing of Rs 165.60 and Rs 167.40 to Rs 164.20 and Rs 166.00 respectively, they added.
The dollar opened at Rs 128 (buying) and Rs 128.10 (selling) against last rate of Rs 128.75 (buying) and Rs 128.85 (selling). It closed at Rs 128 (buying) and Rs 128.10 (selling).