THE RUPEE: 23 paisa recovered versus dollar on SBP intervention

25 Sep, 2004

Volatility seemed to come to a halt on Friday as State Bank's intervention brought back the rupee on its old track which recovered 23 paisa versus dollar in the interbank market at Rs 59.13 and Rs 59.15 for buying and selling, respectively, dealers said. Under the circumstances, whispers were in the air as to how far the rupee would be able to take a boost on the back of central bank's intervention, they added.
One of the main factors is the forward buying of dollars by importers, they said.
Despite sharp fall of the rupee in the interbank market on Thursday, banking sources claimed that they were trying their level best to keep money market tight to save the rupee from sharp depreciation against dollar.
In the meantime, the State Bank is keeping watch over the trend in the currency market. It means that the rupee is not on the mercy of market. The SBP also asked the banks to refrain from speculative trade in currency, they said.
The rupee also lost 20 paisa versus euro for buying and selling at Rs 73.00 and Rs 73.30,dealers said.



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Kerb buying 59.65
Kerb selling 59.75
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Buying 59.13
Selling 59.15
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Repo Rates (Yield p a)
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Tenor Low Bid High Bid Low Offer High Offer Average
=================================================================
Overnight 7.40 7.45 7.40 7.45 7.43
1-Week 6.00 6.25 6.50 6.75 6.38
2-Week 4.00 4.25 4.50 4.75 4.38
1-Month 3.25 3.50 3.75 4.00 3.63
2-Months 3.00 3.20 3.40 3.60 3.30
3-Months 2.80 3.00 3.20 3.40 3.10
4-Months 3.00 3.20 3.40 3.60 3.30
5-Months 3.20 3.40 3.60 3.80 3.50
6-Months 3.30 3.50 3.70 3.90 3.60
9-Months 3.50 3.70 3.90 4.10 3.80
1-Year 3.70 3.90 4.10 4.30 4.00
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Call Rates (Yield p a)
-----------------------------------------------------------------
Tenor Low Bid High Bid Low Offer High Offer Average
=================================================================
Overnight 7.40 7.40 7.40 7.40 7.40
1-Week 6.25 6.50 6.75 7.00 6.63
2-Week 4.50 4.75 5.00 5.25 4.88
1-Month 3.40 3.60 3.80 4.00 3.79
2-Month 3.20 3.40 3.60 3.80 3.50
3-Month 3.30 3.50 3.70 3.90 3.60
4-Month 3.40 3.60 3.80 4.00 3.70
5-Month 3.50 3.75 4.00 4.25 3.88
6-Month 3.50 3.75 4.00 4.25 3.88
9-Month 3.75 4.00 4.25 4.50 4.13
1-Year 4.00 4.25 4.50 4.75 4.38
=================================================================

The dollar's buying continued for the second consecutive day, which led the local currency downward.
The dollar resumed trading at Rs 59.65 and Rs 59.75 on buying and selling counters, respectively. With the increase in its demand, greenback's rate further moved up and closed at Rs 59.70 and Rs 59.80 on buying and selling sides, respectively, against Rs 59.60 and Rs 59.70 of Thursday, the currency dealers said.
Likewise, the local currency remained under pressure and further lost is worth against the pound sterling. The British currency was purchased at Rs 107.10 and was sold Rs 107.50, as compared to Rs 106.80 and Rs 107.10 of Thursday, the dealers added.
The dollar opened at Rs 59.60 (buying) and Rs 59.70 (selling) against same last rates. It did not observe any further change in the second session and closed at Rs 59.50 (buying) and Rs 59.60 (selling).
Pound sterling opened at Rs 107 (buying) and Rs 107.20 (selling) against same overnight value. It did not observe any further change in the second session and closed at Rs 107 (buying) and Rs 107.20 (selling).
Canadian dollar opened at Rs 46.20 (buying) and R 46.30 (selling). It did not observe any further change in the second session and closed at Rs 46.20 (buying) and R 46.30 (selling).

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