The rupee failed to resist further erosion against the dollar in both the inter-bank and open market on Tuesday in the process of trading activity, dealer said. Commenting on the present trend in the market, some analysts said it is not difficult to say that how the national currency will perform in the near future, because the national currency remained on downward versus the dollar and lost over six percent only within last two months.
So, we can't reject the idea of further devaluation of the rupee in terms of the dollar in the coming days, they expect.
At a time, the dollar was trading against the rupee at Rs 124.50, they said.
In the second Asian trade, the dollar fell against the yen and Swiss franc on Tuesday after US President Donald Trump's threats of additional tariffs on China raised worries about an escalating trade war between the world's two largest economies.
China's yuan fell to a more than 5-month low to the dollar, despite a firmer official yuan midpoint, as market sentiment soured.
The Japanese yen climbed 0.7 percent against the dollar to 109.795 yen, its highest level in a week, after Trump threatened to impose a 10 percent tariff on $200 billion of Chinese goods, fuelling trade war worries with Beijing.
Another perceived safe haven during market turmoil, the Swiss franc, also got a boost from the news. It was up as much as 0.3 percent against the dollar to 0.9917 franc.
China's commerce ministry said Beijing will fight back firmly with "qualitative" and "quantitative" measures if the United States publishes an additional list of tariffs on Chinese goods, accusing Washington of launching a trade war. The yuan slid to a low of 6.4490 to the dollar at one point, its weakest since Jan. 15.
The dollar was trading against the Indian rupee at Rs 68.095, the greenback was at 3.996 versus the Malaysian ringgit and the US currency was available at 6.448 in terms of the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Tuesday: 83.70-83.70 (Previous 83.70-83.70).
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Open Bid Rs.122.60
Open Offer Rs.123.60
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Bid Rate Rs.121.70
Offer Rate Rs.121.80
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The dollar resumed trading on a healthy note and kept on rising following fresh buying. As a result, the dollar ended higher at Rs 123.15 and Rs 124.00 on buying and selling counter against the previous closing of Rs 122.30 and Rs 123.20, respectively.
On the contrary, the rupee staged recovery and appreciated its worth against the pound sterling that was purchased and sold at Rs 160.20 and Rs 161.50 as compared to the previous week closing of Rs 160.30 and Rs 163.00, respectively, the dealers said.
The dollar opened at Rs122 (buying) and Rs122.20 (selling) against last rate of Rs120 (buying) and Rs120.20 (selling). It closed at Rs122 (buying) and Rs122.20 (selling).