The rupee slid slightly against the dollar on the money market on Wednesday in the process of trading, dealers said. The rupee shed one paisa against the dollar for buying and selling at Rs 104.85 and Rs 104.86 respectively, they said.
In the second third trade, the dollar wobbled in a narrow range, as investors waited anxiously to see what clues the US Federal Reserve would soon reveal on its monetary policy outlook.
With the futures market pricing in more than a 90 percent chance that it would raise interest rates, investors' main focus turned to what the Fed's statement on Wednesday will say about the pace of hikes this year. "With a rate increase already priced in, we will be watching to see whether the Fed gives any hints about changing its outlooks for inflation or growth," said Kumiko Ishikawa, FX market analyst at Sony Financial Holdings.
"There is a small chance the Fed will signal plans to raise rates four times instead of three this year, which would lift the dollar," she said. Against its Japanese counterpart, the greenback edged up 0.1 percent to 114.81, remaining shy of last week's peak of 115.51, which was its highest level since Jan. 19 as expectations built for the rate increase. The dollar was trading against the Indian rupee at Rs 65.505, the greenback was 4.447 in terms of the Malaysian ringgit and the US currency was at 6.914 versus the Chinese yuan.
Interbank buy/sell rates for the taka against the dollar on Wednesday: 79.54-79.55 (previous 79.53-79.54).
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Open Bid Rs.106.50
Open Offer Rs.106.70
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Bid Rate Rs.104.85
Offer Rate Rs.104.86
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According to currency dealers, the dollar's demand and supply remained intact that kept the national currency under pressure for another day. At the close, it's buying and selling rates further rose from the overnight closing rates of Rs 106.70 and Rs 106.85 to Rs 106.70 and Rs 107.00 respectively, they added.
Likewise, the rupee also followed the same suit versus the pound sterling. The British currency was traded at Rs 129.20 and Rs 130.00 on buying and selling sides, respectively, as compared to the Tuesday's closing rates of Rs 128.60 and Rs 129.30 respectively, they said.