Firm trend was seen on the money market on Friday as the rupee firmly held the overnight levels in terms of the dollar in the process of trading activity, dealers said. The rupee did not show any major change versus the dollar for buying and selling at Rs 138.90 and Rs 138.92 respectively, they said.
In the final Asian trade, the dollar held near 3-month highs against the euro on Thursday, benefiting from sustained strength in core US inflation and weak data out of Europe.
Although headline US inflation growth logged its weakest pace in 1-1/2-years in January, traders focused on the core price gauge, which was up for the third straight month and gave the dollar some impetus.
The greenback was hit earlier this year from a shift to a cautious stance by the Federal Reserve. The latest data suggested the central bank will need to stay vigilant on pricing pressures even as it adjusts policy imperatives in the face of heightened risks to growth.
The dollar index, a gauge of its value versus six major peers, was marginally higher at 97.20, having gained 0.5 percent in the previous session. The index has rallied 1.7 percent so far this month, after two consecutive months of losses.
The dollar was trading against the Indian rupee at Rs 70.840, the greenback was at 4.063 in terms of the Malaysian ringgit and the US currency was at 6.762 versus the Chinese yuan.

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Open Bid       Rs.138.60
Open Offer     Rs.139.10
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Bid Rate       Rs.138.90
Offer Rate     Rs.138.92
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