A divergent trend was witnessed on the money market Tuesday as the rupee moved both sides against the dollar in the process of trading activity, dealers said.
In the second Asian trade, the dollar stood close to a two-week high against key peers on Tuesday, shored up by a resilient US economy and a flagging euro ahead of a European Central Bank policy meeting.
Higher US bond yields kept the dollar well bid, and though rates were off overnight peaks, traders bet the greenback had more going for it than some of its peers.
The euro remained wobbly before the ECB meeting on Thursday. The ECB is facing growing pressure to address how to protect the euro zone economy from a protracted slowdown.
In contrast, the dollar has enjoyed some support from higher US Treasury yields as recent data, including US fourth quarter gross domestic product, has eased fears of a potentially rapid loss in economic momentum.
The dollar index versus a group of six major currencies was 0.05 percent higher at 96.726 after going as high as 96.816 the previous day, its strongest since Feb. 19.
The dollar was trading against the Indian rupee at Rs 70.800, the greenback was at 4.076 versus the Malaysian ringgit and the US currency was at 6.702 in relation to the Chinese yuan.

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Open Bid       Rs.138.50
Open Offer     Rs.139.00
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Bid Rate       Rs.138.72
Offer Rate     Rs.138.75
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