The rupee failed to keep overnight firmness against the dollar on the money market on Wednesday in the process trading activity, marketmen said. The rupee depreciated by 17 paisas versus the dollar for buying at Rs 156.97 and it also shed 15 paisas for selling at Rs 156.99, they said.
In the third Asian trade, the dollar held near a two-week high on Wednesday ahead of the Federal Reserve's closely-watched policy decision later in the day, supported by a surprisingly dovish European Central Bank and bearish eurozone economic data.
The dollar index versus a basket of six major currencies was steady at 97.653 after climbing to 97.766 on Tuesday, its highest level since June 3.
The focus was on whether the greenback can retain its strength after the Fed's two-day policy meeting ends later on Wednesday.
The Fed is widely expected to stand pat on monetary policy this time but open the door for an interest rate cut at the next meeting in July.
The dollar was trading against the Indian rupee at Rs 69.565, the greenback was available at 4.174 in relation to the Malaysian ringgit and the US currency was at 6.905 versus the Chinese yuan.
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Open Bid Rs.155.50
Open Offer Rs.156.50
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Bid Rate Rs.156.97
Offer Rate Rs.156.99
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According to currency dealers, the greenback gained 30-piasas and ended higher for buying at Rs 156.30 against the opening rate of Rs 156.00 whereas it remained unchanged for selling at Rs 157.00.
Besides, the local currency declined its value in process of trading against the pound sterling. The pound's buying and selling rates rose from the Tuesday's closing of Rs 193.00 and Rs 195.20 to Rs 194.50 and Rs 196.10 respectively, they added.
The dollar opened at Rs 157.25 (buying) and Rs 157.35 (selling) against last rate of Rs 157 (buying) and Rs 157.10 (selling). It closed at Rs 157.25 (buying) and Rs 157.35 (selling).
The buying and selling rates of one tola of gold was Rs 83,310 (selling) and Rs 83,000 (buying) in the local Sarafa (gold) markets of Rawalpindi and Islamabad.