The rupee shed its overnight gains against dollar, it, however, gained versus the euro on currency market on Saturday, dealers said. The rupee fell by five paisa in relation to dollar for buying at 84.68 and shed two paisa for selling at 84.70, they said.
"It's pretty close to a one-way bet (on the dollar), but in foreign exchange markets, anything can happen," said Chris Turner, head of foreign exchange strategy at ING Commercial Banking in London. "US monetary policy is deflationary policy, which is great news for the commodity currencies and frames the weak dollar."
The euro rose about 4.6 percent against dollar in April for its best month since September. The dollar fell 2.5 percent this month against yen, its worst month since December.
On Friday euro was buoyed by stronger-than-expected euro-zone inflation data that increased the chance of another ECB rate rise. Trading was thinned by a holiday in the UK for Britain's royal wedding.
The euro closed around $1.4816, little changed on the day but still near its highest since early December 2009.
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Open Buying Rs 84.68
Open Selling Rs 84.70
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Buying Rs 84.45
Selling Rs 84.65
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According to the currency dealers, the dollar's demand and supply situation remained intact that helped rupee stability against the greenback in the open market. The dollar commenced trading at overnight closing of Rs 84.45 and Rs 84.65 as its buying and selling rates, respectively. The dollar witnessed fractional change in its rate during the day's trading but finally ended at the opening level.
However, the rupee maintained downward slide and further depreciated against the British pound. Because of buying support, the pound remained strong and closed higher at Rs 140.50 and Rs 141.00 on buying and selling sides, as compared to Friday closing of Rs 140.20 and Rs 140.80, respectively, the dealers said.
The dollar resumed trading at Rs 84.80 (buying) and Rs 85.20 (selling) against the last rate. It did not observe further change in the evening session and closed at Rs 84.80 (buying) and Rs 85.20 (selling).
Pound Sterling opened at Rs 136.15 (buying) and Rs 137.15 (selling) against the previous rate. It did not witness any change in the evening session and closed at Rs 136.15 (buying) and Rs 137.15 (selling).