The rupee moved both ways against the dollar on the money market on Friday in the process of trading, dealers said. The rupee picked up two paisas versus the dollar for buying and selling at Rs 138.84 and Rs 138.86 respectively, they said.
Fed Chairman Jerome Powell reiterated on Thursday the US central bank has the ability to be patient on monetary policy given that inflation remains stable. Markets are now pricing in no further rate hikes by the Fed this year.
Fed Vice Chair Richard Clarida also struck a dovish tone, underscoring the central bank's willingness to remain patient on the issue of raising rates.
The dollar index fell by 0.17 percent to 95.37. The index has fallen around 2.2 percent since mid-December on expectations that a slowdown in growth, both in the United States as well as globally, will restrict the Fed from raising rates in 2019.
The dollar was trading against the Indian rupee at Rs 70.420, the greenback was at 4.094 in terms of the Malaysian ringgit and the US currency was available at 6.749.
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Open Bid Rs.138.80
Open Offer Rs.139.20
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Bid Rate Rs.138.84
Offer Rate Rs.138.86
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According to currency dealers, the short supply phenomenon of the greenback prevailed throughout the trading session which helped its appreciation by 20 paisas for buying and selling at Rs 138.70 and Rs 139.60 against the overnight closing trend of Rs 138.50 and Rs 139.40 respectively.
Similarly, the local currency also followed the same suit in relation to the pound sterling. Consequently, the pound's buying and selling rates improved from Thursday's closing of Rs 175.50 and Rs 176.80 to Rs 176.00 and Rs 177.50 respectively, they added.
The dollar opened at Rs 138.85 (buying) and Rs 139.05 (selling) against last rate of Rs 138.70 (buying) and Rs 138.90 (selling). It closed at Rs 138.85 (buying) and Rs 139.05(selling).
The buying and selling rates of one tola of gold was Rs 67,800 (selling) and Rs 67,5000 (buying) in the local Sarafa (gold) markets of Rawalpindi and Islamabad.