The rupee crossed an important barrier of 139 versus the dollar on the inter-bank market on Wednesday amid persistent tensions between India and Pakistan, dealers said. Commenting on the present trend in the money market, some currency experts observed that dollar went up following the rising tensions between India and Pakistan. They expect if war like situation settles down in the near-term, the rupee may resist its reduction against the dollar.
In the third Asian trade, the dollar remained near a three-week low on Wednesday after Federal Reserve Chairman Jerome Powell reiterated that the central bank would stay patient on monetary policy and as the pound rallied.
The dollar index against a basket of six major currencies stood at 96.056 after shedding 0.4 percent overnight, when it stooped to 95.948, its lowest since Feb 5.
Powell said on Tuesday that rising risks and recent soft data were unlikely to prevent solid growth for the US economy this year, but that the Fed would remain "patient" in its decisions on further interest rate hikes.
The dollar was trading against the Indian rupee at Rs 71.135, the greenback was at 4.064 in terms of the Malaysian ringgit and the US currency was at 6.688 versus the Chinese yuan.
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Open Bid Rs.138.70
Open Offer Rs.139.20
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Bid Rate Rs.139.23
Offer Rate Rs.139.25
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According to currency dealers, the short supply phenomenon of the greenback prevailed for the second consecutive day in the market which helped its further appreciation for buying and selling at Rs 139.00 and Rs 139.80 against the overnight closing trend of Rs 138.60 and Rs 139.30 respectively.
Similarly, the local currency also followed the same suit in relation to the pound sterling.
The pound's buying and selling rates further improved from the Tuesday's closing of Rs 180.50 and Rs 182.00 to Rs 182.10 and Rs 183.90 respectively, they added.
The dollar opened at Rs139 (buying) and Rs 139.10 (selling) against last rate of Rs138.60 (buying) and Rs 138.70 (selling). It closed at Rs139 (buying) and Rs 139.10(selling).
The buying and selling rates of one tola of gold was Rs. 69,200 (selling) and Rs 69,000(buying) in the local Sarafa (gold) markets of Rawalpindi and Islamabad.