THE RUPEE: stable trend in currency market

03 Jul, 2004

With the start of new fiscal year, the rupee firmed up in the interbank market on Friday at Rs 58.15 and Rs 58.15 for buying and selling, respectively, dealers said.
In the meantime, they said, the rupee may not continue its firmness as a result of rising dollar demand next week as the corporate sector would cover short-term position for the upcoming debt payments.
The local currency may not fall very sharply, as the inflow of remittances usually rises in the month of July, which could support the rupee slightly.
In the world markets, the dollar gave up its weakness versus leading currencies ahead of job data, moneychangers said.
The rupee, however, maintained its overnight levels versus dollar for buying and selling at Rs 58.50 and Rs 58.55, dealers said.

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Kerb Buying Rs 58.50
Kerb Selling Rs 58.55
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Interbank closing rates for dollar on Friday.

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Buying Rs 58.14
Selling Rs 58.15
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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 0.15 0.30 0.30 0.50 0.31
1-Week 0.50 1.00 1.25 1.50 1.06
2-Week 2.00 2.25 2.50 2.75 2.38
1-Month 1.70 1.90 2.10 2.30 2.00
2-Months 2.00 2.20 2.40 2.60 2.30
3-Months 2.20 2.40 2.60 2.80 2.50
4-Months 2.30 2.50 2.70 2.90 2.60
5-Months 2.30 2.50 2.70 2.90 2.60
6-Months 2.40 2.60 2.80 3.00 2.70
9-Months 2.80 3.00 3.20 3.40 3.10
1-Year 3.00 3.20 3.40 3.60 3.30
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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 0.30 0.50 0.60 0.70 0.53
1-Week 0.75 1.00 1.25 1.50 1.13
2-Week 2.25 2.50 2.75 3.00 2.63
1-Month 2.00 2.20 2.40 2.60 2.30
2-Month 2.20 2.40 2.60 2.80 2.50
3-Month 2.40 2.60 2.80 3.00 2.70
4-Month 2.60 2.80 3.00 3.20 2.90
5-Month 2.60 2.80 3.00 3.20 2.90
6-Month 2.70 2.60 3.10 3.30 3.00
9-Month 3.00 3.25 3.50 3.75 3.38
1-Year 3.20 3.40 3.60 3.80 3.50
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There was a sudden change in dollar's demand, which helped appreciation in its worth amid buying spree. The dollar resumed trading at overnight closing rates of Rs 58.35 and Rs 58.45 on buying and selling counters, respectively.
With the increase in dollar's demand, its rate starting moving upward and finally closed at Rs 58.45 and Rs 58.55 on buying and selling sides, respectively.
The currency dealers were of the view that declining rate of the greenback attracted fresh buying, which pushed the local currency down.
On the contrary, the rupee showed stability and remained unchanged against the pound sterling. The British currency was purchased at Rs 106.00 and was sold at Rs 106.50 amid thin trading volume, the dealers added.
The dollar opened at Rs 58.40 (buying) and Rs 58.50 (selling) against last rate of Rs 58.25 (buying) and Rs 58.35 (selling). It did not observe any further change in the second session and closed at Rs 58.40 (buying) and Rs 58.50 (selling).
Pound sterling opened at Rs 106.60 (buying) and Rs 106.80 (selling) against last rate of Rs 106.80 (buying) and Rs 107 (selling). British currency did not observe any further change in the second session and closed at Rs 106.60 (buying) and Rs 106.80 (selling).

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