Weaker trend was witnessed on the money market on Wednesday as the rupee tended lower in terms of the dollar in process of trading, dealers said. The rupee shed five paisas in terms of the dollar for buying and selling at Rs 139.43 and Rs 139.45 respectively, they said.
In the third Asian trade, the dollar was on the defensive on Tuesday, weighed by growing expectations the Federal Reserve would adopt a more accommodative policy outlook this week and concerns about slower US economic growth.
The dollar index, which measures the greenback against a basket of six major currencies, dipped 0.1 percent to 96.43, hovering close to a two-week low touched overnight.
The index has lost 1.3 percent after hitting a three-month high of 97.710 on March 7, on views the Fed will strike a dovish tone at its two-day policy meeting due to start later on Tuesday.
Many investors expect the Fed to keep its benchmark overnight interest rate unchanged and stick to its pledge of a "patient" approach to monetary policy.
The dollar was trading against the Indian rupee at Rs 68.560, the greenback was at 68.53 versus the Malaysian ringgit and the US currency was at 6.716 in terms of the Chinese yuan.
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Open Bid Rs.139.30
Open Offer Rs.139.80
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Bid Rate Rs.139.43
Offer Rate Rs.139.45
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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 139.70 and Rs 140.20 against the overnight closing trend of Rs 139.40 and Rs 139.85 respectively.
Likewise, the national currency also followed the same suit in relation to the pound sterling. The pound's buying and selling rates rose from the Tuesday's closing of Rs 183.60 and Rs 184.20 to Rs 183.90 and Rs 184.70 respectively, they added.
The dollar opened at Rs139.50(buying) and Rs 139.60(selling) against last rate of Rs139.40(buying) and Rs 139.50(selling). It closed at Rs139.50(buying) and Rs 139.60(selling).
The buying and selling rates of one tola of gold was Rs. 59,400 (selling) and Rs 59,000(buying) in the local Sarafa (gold) markets of Rawalpindi and Islamabad.