The rupee gave up overnight firmness against the dollar on the money market on Thursday in the process of trading activity, dealers said.
In the fourth Asian trade, the dollar nursed light losses on Thursday, weighed down by lower US yields and a rebound in the pound from 27-month lows.
The dollar index versus a basket of six major currencies was flat at 97.200 after shedding 0.2% the previous day.
The index had climbed to a one-week peak of 97.444 the previous day on stronger-than-expected US retail sales and a slump in sterling. But it nudged lower as Treasury yields fell in the wake of weak US housing market data and concerns about the unresolved US-China trade conflict.
"The dollar basically handed back earlier gains as Treasury yields pulled back and on IMF comments, and came back to where it was a few days ago," said Takuya Kanda, general manager at Gaitame.Com Research Institute.
Various economic data have given conflicting signs regarding the state of the US economy, but that does not change the bigger picture of the dollar facing downward pressure due to an impending rate cut by the Federal Reserve, Kanda said.
The dollar was trading against the Indian rupee at Rs 68.798, the greenback was available at 4.111 versus the Malaysian ringgit and US currency was at 6.878 in relation to the Chinese yuan.
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Open Bid Rs.159.80
Open Offer Rs.160.30
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Bid Rate Rs.160.00
Offer Rate Rs.160.05
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According to currency dealers, the short supply phenomenon of the US dollar prevailed throughout the trading session which helped its appreciation for buying and selling at Rs 160.40 and Rs 160.90 against the previous closing trend of Rs 160.00 and Rs 160.60 respectively.
Similarly, the rupee also followed the suit versus the pound sterling. Consequently, the pound's buying and selling rates rose from the Wednesday's closing of Rs 198.50 and Rs 200.00 to Rs 199.50 and Rs 200.50 respectively, they added.
The dollar opened at Rs 160.70(buying) and Rs 160.80 (selling) against last rate of Rs 160.50(buying) and Rs 160.60 (selling). It closed at Rs 160.70(buying) and Rs 160.80 (selling).
The buying and selling rates of one tola of gold was Rs 80,300 (selling) and Rs 80,000 (buying) in the local Sarafa (gold) markets of Rawalpindi and Islamabad.