Stability prevailed in the interbank market on Wednesday as the rupee held its overnight levels versus dollar at Rs 58.20 and Rs 58.22 for buying and selling, respectively.
Market players welcomed the positive change in the interbank market as the local currency managed to hold on to its present position. They were amazed over the development in the market as some payments are still have to cleared and the market is purchasing dollars to meet their requirements.
They observed that banks had sold dollars to ease pressure from the rupee and said that the rupee was likely to sustain its trend in the near future.
Analysts said that under the circumstances, rising trend in the inflation was really a bad news, because it indicated an upward trend in essential commodity prices.
Experts said that the future direction of the currency market would depend on the demand for dollars by interbank market because supply is enough to meet the market's usual requirements.
In fact, the forex market was somewhat nervous after inflation data, and ahead of State Bank's monetary policy statement which is to be announced on July 22.
In the world markets, the dollar recovered on the back of positive economic data, dealers said.
Stable trend in the interbank market also mirrored in the open market as the rupee recovered five paisa in relation to dollar at Rs 58.40 and Rs 58.50 for buying and selling, respectively.Versus the euro, the rupee lost 30 paisa for buying and selling at Rs 72.00 and Rs 72.30.
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Kerb Buying Rs 58.40
Kerb Selling Rs 58.50
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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 0.30 0.50 0.60 0.75 0.54
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 1.05 1.15 1.25 1.40 1.21
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 0.40 0.60 0.80 1.00 0.70
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 1.20 1.40 1.60 1.80 1.50
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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