THE RUPEE: dollar turns lower

Rising trend was witnessed on the local currency market on Tuesday as the rupee recovered modestly against dollar, dealers said. The rupee maintained its climb versus dollar, gaining 12 paisa for buying and selling at 85.92 and 85.96, they said. In the second Asian trade dollar gingerly tested firmer ground after a bout of choppiness and players did not rule out an eventual 1.5 cent retreat by euro if some long positions grew stale and unwound ahead of expected US easing.
INTERBANK MARKET RATES: With quantitative easing from the Federal Reserve now well priced-in ahead of its November 2-3 meeting, currencies have broken higher ground against dollar, with euro topping $1.4160 last week and the Australian dollar testing parity. But squeezing out more gains is likely to be tough until the market sees how sizeable QE will be, with one trader saying, for Tuesday at least, that short-term players were simply flipping positions within tight ranges.
Spot yuan pulled back from its recent high versus dollar for the second day, as the People's Bank of China fixed a weaker mid-point to allow the yuan to take a breather after recent gains.
Interbank buy/sell rates for taka against the dollar on Tuesday : 70.38/70.45 (previous 70.25/70.40) Call Money Rates: 4.50-6.25 percent (previous 4.50-6.50 percent.
Indian rupee weakened after a steady start as strong dollar demand from importers, weak Asian currencies and choppy local shares outweighed support from foreign fund inflows, mainly towards Coal India share sale.
The issue is expected to draw billions of dollars in overseas demand that could add to upward pressure on the rupee. But, dealers expect the rupee to be boxed in 44.35-44.65 per dollar band on persistent importer dollar demand.
OPEN MARKET RATES: The rupee rose by five paisa versus dollar for buying and selling at 86.00 and 86.20, they said. The rupee, however, failed to come out of the slide in relation to uro, falling 27 paisa for buying at Rs 119.06 and Rs 119.56, they added.

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Open Buying      Rs 86.00

Open Selling     Rs 86.20

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Interbank Closing Rates: Interbank Closing Rates For Dollar on Tuesday.

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Buying           Rs 85.92

Selling          Rs.85.96

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Repo Rates (Yield p a)

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Tenor      Low Bid   High Bid   Low Offer   High Offer    Average

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Overnight    11.50      12.75      11.75       13.00        12.25

1-Week       11.25      12.10      12.00       12.20        11.89

2-Week       11.25      12.15      12.00       12.25        11.91

1-Month      11.60      12.30      12.25       12.35        12.13

2-Months     12.20      12.40      12.35       12.50        12.36

3-Months     12.30      12.65      12.55       12.75        12.56

4-Months     12.50      12.75      12.75       12.80        12.70

5-Months     12.55      12.90      12.85       13.00        12.83

6-Months     12.60      12.90      12.80       13.00        12.83

9-Months     12.70      13.00      12.95       13.10        12.94

1-Year       12.80      13.00      13.00       13.15        12.99

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Call Rates (Yield p a)

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Tenor      Low Bid   High Bid   Low Offer   High Offer    Average

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Overnight    11.50      12.80      11.80       13.00        12.28

1-Week       11.25      12.25      12.10       12.30        11.98

2-Week       11.40      12.30      12.10       12.35        12.04

1-Month      12.10      12.50      12.25       12.60        12.36

2-Months     12.40      12.75      12.70       12.90        12.69

3-Months     12.50      13.00      12.85       13.10        12.86

4-Months     12.60      13.00      13.00       13.10        12.93

5-Months     12.70      13.10      13.10       13.20        13.03

6-Months     12.80      13.25      12.90       13.35        13.08

9-Months     12.90      13.30      13.10       13.40        13.18

1-Year       13.10      13.40      13.20       13.45        13.29

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RUPEE IN LAHORE: The Pak rupee showed stability and remained unchanged against the dollar amid low trading activity in the local currency market on Tuesday.
The currency dealers stated that the dollar's demand and supply situation remained intact at its last day position that helped rupee stability against the greenback. The dollar was traded at overnight closing of Rs 86.10 and Rs 86.30, as its buying and selling rates, respectively.
On the contrary the Pak rupee showed strength and appreciated its value by Rs 1.20 on buying side and 50-paisa on selling side against the pound. The pound was purchased and sold at Rs 134.50 and Rs 136.00, as compared to Monday closing of Rs 135.70 and Rs 136.50, respectively.
RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee-dollar parity remained unchanged at the currency markets of Islamabad and Rawalpindi on Tuesday. The dollar resumed trading at Rs 86.15 (buying) and Rs 86.50 (selling) against same last rates. It did not observe further change in the evening session and closed at Rs 86.15 (buying) and Rs 86.50 (selling).
Pound sterling opened at Rs 134.05 (buying) and Rs 135.20 (selling) in the morning session. It did not observe further change in the last trading hours and closed at Rs 134.05 (buying) and Rs 135.20 (selling).
Copyright Business Recorder, 2010