Clearance of most of major payments eased pressure on the rupee in the interbank market on Tuesday, which recovered six paisa versus dollar at Rs 58.20 and Rs 58.22 for buying and selling, respectively, dealers said.
According to market sources, banks have paid nearly 100-120 million dollars to the international companies and it is expected that after payment of remaining bills the local currency might be able to recover more of its lost ground versus greenback.
In the first month of the new fiscal year, Hub Power had to pay about 45 million dollars debt to international creditors.
Similarly, some oil and debt payments were also in hand all of which have been paid and it is hoped that dollars supply would improve in the coming days, experts said.
After all big payments, market sources said, the State Bank might check the fluctuation in the currency regime ahead of trade policy, which is expected to be announced on July 20.In the meantime, analysts said, inflation has been rising continuously as a result of increase in the essential commodities prices.
The inflation measured by the Consumer Price Index (CPI) rose to 8.45 percent in the final month of last fiscal year.According to statistics, the sharp rise in inflation was the result of rapid growth of the country's economy (by 6.4 percent against the target of 5.3 percent) and the unusual rise in wheat prices.
In world markets, the dollar managed to come out of weak spell ahead of economic data, dealers said.
The local currency, however, gained 25 paisa versus euro for buying and selling at Rs 71.95 and Rs 72.00.
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Kerb Buying Rs 58.45
Kerb Selling Rs 58.55
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Buying Rs 58.20
Selling Rs 58.22
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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 0.40 0.75 0.75 1.00 0.73
1-Week 0.25 0.50 0.75 1.00 0.63
2-Week 0.75 1.00 1.25 1.50 1.13
1-Month 1.20 1.40 1.60 1.80 1.50
2-Months 1.30 1.50 1.70 1.90 1.60
3-Months 1.50 1.60 1.80 2.00 1.73
4-Months 1.70 1.90 2.10 2.30 2.00
5-Months 2.00 2.20 2.40 2.60 2.30
6-Months 2.20 2.40 2.60 2.80 2.50
9-Months 2.75 3.00 3.25 3.50 3.13
1-Year 3.00 3.25 3.50 3.75 3.38
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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 0.50 0.75 1.00 1.25 0.88
1-Week 0.50 0.75 1.00 1.25 0.88
2-Week 1.00 1.25 1.50 1.75 1.38
1-Month 1.40 1.60 1.80 2.00 1.70
2-Month 1.50 1.70 1.90 2.10 1.80
3-Month 1.70 1.90 2.10 2.30 2.00
4-Month 1.90 2.10 2.30 2.50 2.20
5-Month 2.20 2.40 2.60 2.80 2.50
6-Month 2.40 2.60 2.80 3.00 2.70
9-Month 3.00 3.25 3.50 3.75 3.38
1-Year 3.25 3.50 3.75 4.00 3.63
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