The rupee on Friday shed seven paisa in relation to dollar in the open market at Rs 58.52 and Rs 58.57 for buying and selling, respectively, dealers said.
Increased dollar buying by the corporate sector dragged down the rupee value in the open market, they added.
The rupee was under pressure due rising dollar demand and it would continue its fall against the US currency as the government in its trade policy has announced a 3.0 billion dollars trade deficit target for the current fiscal year.
Importers are making profits on the back of rupee's fall and are anticipating further gains in the coming days, analysts said. On the other hand, exporters were holding back the export proceeds, which was creating dearth of dollars in the market, they added.
On Thursday, the government announced its trade policy for fiscal year 2004/05 in which it targeted $16.7 billion imports against $13.7 billion exports, thus creating a trade deficit of $3.0 billion against $3.2 billion of 2003/04.
The rupee, however, gained 10 paisa versus euro for buying and selling at Rs 71.40 and Rs 71.70.
The rupee managed to sustain its overnight levels versus dollar at Rs 58.31 and Rs 58.33 for buying and selling, respectively, market sources said.
================================
Kerb Buying Rs 58.52
Kerb Selling Rs 58.57
================================
==============================
Buying Rs 58.31
Selling Rs 58.33
==============================
=================================================================
Repo Rates (Yield p a)
-----------------------------------------------------------------
Tenor Low Bid High Bid Low Offer High Offer Average
=================================================================
Overnight 4.00 5.00 6.00 7.00 5.50
1-Week 2.25 2.50 2.75 3.00 2.63
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 1.75 2.00 2.25 2.50 2.13
3-Months 1.90 2.10 2.30 2.50 2.20
4-Months 2.00 2.20 2.40 2.60 2.30
5-Months 2.20 2.40 2.60 2.80 2.50
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
=================================================================
Call Rates (Yield p a)
-----------------------------------------------------------------
Tenor Low Bid High Bid Low Offer High Offer Average
=================================================================
Overnight 4.50 5.50 6.50 7.40 5.98
1-Week 2.50 2.75 3.00 3.25 2.88
2-Week 2.25 2.50 2.75 3.00 2.63
1-Month 1.90 2.10 2.30 2.50 2.20
2-Month 2.00 2.25 2.50 2.75 2.38
3-Month 2.20 2.40 2.60 2.80 2.50
4-Month 2.25 2.50 2.75 3.00 2.63
5-Month 2.40 2.60 2.80 3.00 2.70
6-Month 2.60 2.80 3.00 3.20 2.90
9-Month 3.00 3.20 3.40 3.60 3.30
1-Year 3.20 3.40 3.60 3.80 3.50
=================================================================