The rupee continued fall against the dollar on the money market on Tuesday in the process of trading activity, dealers said.

In the second Asian trade, the dollar began the week on a firm note on Monday as economic data pointed to strength right across the US economy, while optimism on the outlook for China supported Asian currencies.

The greenback held steady near a one-week high against the euro, at $1.1095, and just below an eight-month peak on the Japanese yen, at 110.17 yen per dollar. Against a basket of currencies it was flat.

China's yuan edged 0.2% higher to a fresh six-month top, while the Australian and New Zealand dollars also edged ahead. Moves were slight and volumes thin as Chinese New Year approaches in Asia and with US markets closed for Martin Luther King day on Monday.

Figures on Friday showed US homebuilding surged to a 13-year high in December, with retail sales also on the rise and a gauge of manufacturing activity rebounding to its highest in eight months. Futures pricing suggests nobody thinks the US Federal Reserve will cut rates when it meets at the end of the month.

The dollar was trading against the Indian rupee at Rs 71.080, the greenback was at 4.055 in terms of the Malaysian ringgit and the US currency was at 6.850 versus the Chinese yuan.

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Open Bid       Rs 154.60
Open Offer     Rs 154.90
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Bid Rate       Rs 154.61
Offer Rate     Rs 154.62
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According to currency dealers, the short supply phenomenon of the dollar prevailed throughout the trading session that helped its appreciation for buying and selling at Rs 154.40 and Rs 154.75 against overnight closing rate of Rs 154.30 and Rs 154.65 respectively.

Likewise, the local currency also followed the same pattern against the pound sterling that was bought and sold at Rs 200.70 and Rs 202.00 against the Monday's closing trend of Rs 199.55 and Rs 200.70 respectively, they added.

The dollar opened at Rs 155.20(buying) and Rs 155.30(selling) against last rate of Rs 155(buying) and Rs 155.10(selling).

It closed at Rs 155.20(buying) and Rs 155.30(selling).

The buying and selling rates of one tola of gold were Rs 90,500 (selling) and Rs 90,200 (buying) in the local Sarafa (gold) markets of Islamabad and Rawalpindi.