The rupee gained slightly on the inter-bank market, it, however, fell sharply against the dollar on the open market on Wednesday in process of trading activity, dealers said. The rupee managed to pick up slightly versus the dollar for buying at Rs 133.75 and it rose by three paisas for selling at Rs 133.78, dealers said.
In the second Asian trade, the dollar strengthened against most major peers on Wednesday, while the yen weakened as upbeat Wall Street earnings reduced global appetites for safe haven assets.
The three main Wall Street indexes each rose by more than 2 percent as blue-chips delivered strong earnings indicating that the US economic recovery is on track despite rising interest rates and global trade war tensions.
Data on Tuesday showed that US industrial production increased for a fourth straight month in September, boosted by gains in manufacturing and mining output, but momentum slowed sharply in the third quarter.
The dollar index, a gauge of its value against six major peers, rose 0.14 percent to quote at 95.18 on Wednesday. The greenback was trading at 112.34 yen, a gain of 0.07 percent against the Japanese currency.
The dollar was trading against the Indian rupee at Rs 73.540, the greenback at 4.152 in terms of the Malaysian ringgit and the US dollar available at 6.923 in relation to the Chinese yuan.
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Open Bid Rs.133.00
Open Offer Rs.134.00
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Bid Rate Rs.133.75
Offer Rate Rs.133.78
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According to currency dealers, the short supply phenomenon of the greenback prevailed for another day in the market which helped its further appreciation for buying and selling at Rs 133.60 and Rs 134.50 against the overnight closing trend of Rs 133.10 and Rs 134.00 respectively.
On the contrary, the local currency showed strength as it recovered its earlier losses versus the pound sterling. The pound's buying and selling rates slid from Tuesday's closing of Rs 172.50 and Rs 174.00 to Rs 172.30 and Rs 173.80 respectively, they added.
The dollar opened at Rs 133 (buying) and Rs 133.10 (selling) against last rate of Rs 132.90 (buying) and Rs 133 (selling). It closed at Rs 132.90 (buying) and Rs 133(selling).
The buying and selling rates of gold remained Rs 61,850 per tola (selling) and Rs 61,5000(buying) in the local Sarafa (gold) markets of Islamabad and Rawalpindi. Gold was traded at this rate in the local markets on Tuesday.