Declining trend was witnessed on the money market on Monday as the rupee drifted lower against the dollar in process of trading activity, dealers said. The rupee shed 10 paisas versus the dollar for buying and selling at Rs 132.55 and Rs 132.60 respectively, dealers said.
In the first Asian trade, the dollar edged higher against a basket of its key rivals on Monday, not far off a 10-week high hit after data showed US economic growth slowed less than expected and as global risk sentiment remained fragile.
The US currency has found support recently on safe-haven buying as investor demand for riskier assets waned on steep declines in world equity markets on worries over corporate earnings, geopolitical uncertainty and global growth.
On Monday, the dollar index, which measures the greenback's performance against a basket of six major currencies, gained 0.1 percent to 96.446. The index has advanced 1.4 percent this month.
On Friday, it rose as high as 96.860, its best level since Aug. 15, after data showed the US economy slowed less than expected in the third quarter. But it later turned and ended 0.3 percent lower on the day.
The euro dipped 0.1 percent to $1.1395 even as German Chancellor Angela Merkel's junior coalition partners gave her conservatives until next year to deliver more policy results.
The dollar was trading against the Indian rupee at Rs 73.403, the greenback was at 4.177 in terms of the Malaysian ringgit and the US currency was available at 6.953 versus the Chinese yuan.
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Open Bid Rs.131.50
Open Offer Rs.132.50
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Bid Rate Rs.132.55
Offer Rate Rs.132.60
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According to currency dealers, the dollar did not witness any change in its demand and supply situation as it firmly sustained its opening trend for buying and selling at Rs 130.50 and Rs 131.50 respectively.
Furthermore, the national currency stayed unchanged against the pound sterling for buying at Rs 166.50 whereas it recovered 20 paisas for selling at Rs 167.80 against the last closing rate of Rs 168.00, they added.
The dollar opened at Rs 131.75 (buying) and Rs 131.85(selling) against same last week's rate. It closed at Rs 131.75(buying) and Rs 131.85 (selling).
The buying and selling rates of gold were Rs 59,700 (selling) and Rs 59,500(buying) in the local Sarafa (gold) markets of Islamabad and Rawalpindi here on Monday.