The rupee appreciated modestly against the dollar on the money market on Wednesday in the process of trading activity, dealers said. The rupee rose by 30 paisas versus the dollar for buying and selling at Rs 158.20 and Rs 158.30 respectively.
The rupee managed to recover overnight losses, gaining 50 paisas against the euro for buying and selling at Rs 174.50 and Rs 177.00 respectively, they said.
In the third Asian trade, the dollar fell against the yen as Japanese stocks opened lower on Wednesday in a sign markets remain nervous about US-China trade frictions following major foreign exchange volatility in the previous session.
Traders await China's central bank fixing for the onshore yuan later on Wednesday and currencies are expected to remain stable, provided there is no fresh exchange of policy or rhetorical shots between Beijing and Washington.
The world's two-largest economies are locked in an intense trade dispute that rapidly escalated late last week when US President Donald Trump said he would impose more tariffs on Chinese goods.
The dollar index, which measures the greenback against six major currencies, rose 0.37% to 97.581.
The dollar was trading against the Indian rupee at Rs 70.810, the greenback was at 4.187 in terms of the Malaysian ringgit and the US currency was at 7.033 versus the Chinese yuan.
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Open Bid Rs.157.50
Open Offer Rs.158.50
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Bid Rate Rs.158.20
Offer Rate Rs.158.30
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Following fluctuating demand and supply situation in the market, the greenback moved both ways and ended for buying and selling at Rs 158.20 and Rs 158.80 against the opening rates of Rs 158.00 and Rs 159.00 respectively, local currency dealers said.
Moreover, the rupee showed strength as it gained 10 paisas versus the pound sterling. The pound's buying and selling rates slid from the Tuesday's closing of Rs 190.10 and Rs 191.50 to Rs 190.00 and Rs 191.40 respectively, they added.
The dollar opened at Rs 159 (buying) and Rs 159.10(selling) against last rate of Rs 158.80 (buying) and Rs 158.90(selling). It closed at Rs 159(buying) and Rs 159.10 (selling).
The buying and selling rates of one tola of gold remained as Rs 84,200 (selling) and Rs 83,900 (buying) in the local Sarafa (gold) markets of Islamabad and Rawalpindi.