The rupee failed to keep overnight gains against the dollar on the money market on Friday in the process of trading, dealers said. The rupee moved slightly in relation to the dollar for buying and selling at Rs 104.84 and Rs 104.85 respectively, they said.
A surprisingly robust private US jobs report from ADP heightened bets the monthly non-farm payrolls release later on Friday will give the Fed more reason to raise rates at its March 14-15 meeting - as many central bank officials have recently signalled it intends to do.
Markets were pricing in more than a 90 percent chance of a hike after Wednesday's private-sector payrolls report showed employers added 298,000 jobs in February. Analysts polled by Reuters forecast that US employers likely added 190,000 workers last month, fewer than January's 227,000 and average hourly earnings likely grew 0.3 percent following a 0.3 percent fall in January.
The euro was up 0.2 percent at $1.0594, but still down 0.3 percent for the week even after comments from European Central Bank head Mario Draghi pulled it off its session lows on Thursday. The dollar was available against the Indian rupee at Rs 66.690, the greenback was at 4.455 in terms of the Malaysian ringgit and the US currency was at 6.914 in relation to the Chinese yuan.
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Open Bid Rs.106.50
Open Offer Rs.106.70
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Bid Rate Rs.104.84
Offer Rate Rs.104.85
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According to currency dealers, the dollar demand and supply situation stayed intact that kept the national currency under pressure throughout the trading session. Consequently, it appreciated and ended higher at Rs 106.60 and Rs 106.75 on buying and selling sides, respectively, as compared to the overnight closing rates of Rs 106.20 and Rs 106.50 respectively, they added.
Similarly, the rupee also followed the same suit against the pound sterling. The pound's buying and selling rates rose from the Thursday's closing rates of Rs 127.90 and Rs 129.00 to Rs 128.80 and Rs 129.80 respectively, they said.