Firmness prevailed on the money market on Friday as the rupee did not move any side against the dollar in the process of trading, dealers said. The rupee inched up by one paisa against the dollar for buying and selling at Rs 115.61 and Rs 115.62 respectively, they said.
The dollar's index against six major currencies on Thursday hit a high of 91.639, its strongest level since mid-January, as investors have warmed to the greenback thanks to attractive Treasury yields. It last stood at 91.527.
Earlier this year, the correlation between US yields and the dollar had broken down as investors focused more on trade frictions and geopolitical issues, with currencies largely driven by Trump's tweets than by economic data and yields.
But so far this week, the markets have turned their attention to interest rate plays, pushing concerns over US-China trade on the back burner for now.
The dollar was trading against the Indian rupee at Rs 66.685, the greenback was at 66.75 in terms of the Malaysian ringgit and the US currency was available at 6.337 versus the Chinese yuan.
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Open Bid Rs.118.20
Open Offer Rs.118.70
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Bid Rate Rs.115.61
Offer Rate Rs.115.62
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According to currency dealers, the US dollar resumed trading on its overnight closing trend of Rs 118.40 and Rs 118.70 as its buying and selling rates, respectively. The dollar did not witness any change as its opening rates prevailed till close of trading, they added.
In addition, the local currency maintained upward trend for the second consecutive day versus the pound sterling. Consequently, the pound's buying and selling rates further slid from Thursday's closing of Rs 164.25 and Rs 165.20 to Rs 162.50 and Rs 163.60 respectively, they said.
The dollar opened at Rs 118.20 (buying) and Rs 118.40 (buying) against last rate of Rs 118 (buying) and Rs 118.20 (buying). It closed at Rs 118.20 (buying) and Rs 118.40 (buying).