THE RUPEE: all round decline on forex market

27 Jul, 2004

Increased importers' rush for dollars on Monday pulled the rupee value down in the interbank market to face 10 paisa erosion in a single day for a dollar at Rs 58.46 and Rs 58.48 for buying and selling, respectively, currency dealers said.
Continued demand for dollars by importers pushed the rupee to lowest since December 2002, compared with Rs 58.36 and Rs 58.38 weekend's rate as the government has to pay approximately 30 million dollars on Tuesday.
Since the new fiscal year started, the rupee has lost about 35 paisa versus dollar due to tight availability of the US currency. Demand was so strong that even small investors were not selling dollars on anticipation of improved profit or return in the coming days. If the rupee continues its fall versus dollar, the latter might touch Rs 58.50 mark in near future, analysts said.
All foreign major banks covered their requirements and bought nearly 30-40 million dollars to meet the debt payments, experts said.
The local currency also came under pressure versus euro and lost 50 paisa for buying and selling at Rs 71.20 and Rs 71.50 on rising its demand in the international markets, they added.

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Kerb Buying Rs 58.60
Kerb Selling Rs 58.65
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Interbank closing rates for dollar on Monday.

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Buying Rs 58.46
Selling Rs 58.48
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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 0.50 1.50 1.00 2.00 1.25
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 2.00 2.20 1.80
2-Months 1.80 2.00 2.20 2.40 2.10
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 3.25 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 0.75 1.75 1.25 2.25 1.50
1-Week 0.75 1.00 1.25 1.50 1.13
2-Week 1.25 1.50 1.75 2.00 1.63
1-Month 1.80 2.00 2.20 2.40 2.10
2-Month 2.00 2.20 2.40 2.60 2.30
3-Month 2.10 2.30 2.50 2.70 2.40
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 3.25 3.50 3.75 4.00 3.63
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Currency dealers said the dollar remained under demand and accordingly, it registered gain against the rupee. The demand for dollars commenced at Saturday's closing levels of Rs 58.55 and Rs 58.65 on buying and selling counters, respectively.
With the increase in demand for the dollar its rate moved up, and closed marginally higher at Rs 58.60 and Rs 58.70, as its buying and selling rates, respectively, the dealers added.
Similarly, the rupee remained under pressure, and lost its value against the British pound. The pound was traded at Rs 107.50 and Rs 108.00 on buying and selling counters, respectively, as compared to Rs 107.35 and Rs 107.70 of Saturday, they said.
The greenback opened at Rs 58.50 (buying) and Rs 58.60 (selling) against the last rate of Rs 58.40 (buying) and Rs 58.50 (selling). It did not observe any further change in the second session, and closed at Rs 58.50 (buying) and Rs 58.60 (selling).
The pound sterling opened at Rs 107.70 (buying) and Rs 107.90 (selling) against the last rate of Rs 108 (buying) and Rs 108.20 (selling). It did not observe any further change in the second session, and closed at Rs 107.70 (buying) and Rs 107.90 (selling).
The Canadian dollar opened at Rs 43.50 (buying) and Rs 43.70 (selling) against the last rate of Rs 44 (buying) and Rs 44.10 (selling). It did not observe any further change in the second session, and closed at Rs 43.50 (buying) and Rs 43.70 (selling).

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