THE RUPEE: panic buying of dollar continues in interbank market

29 Sep, 2004

Panic buying of dollars continued in the interbank market on Tuesday and it touched the new high mark of Rs 59.25, dealers said. The rupee lost five paisa against dollar at Rs 59.20 and Rs 59.22 for buying and selling, respectively, they said.
In fact, the supply side is strong in the absence of proper selling of dollars, they added. The rupee came under pressure as the government had to clear some major bills for oil.
Even exporters did not come to rescue the rupee and held back their dollars stock anticipating further increase in dollar's value in the coming days, analysts said.
However, State Bank's indirect intervention and stable foreign exchange reserves helped the rupee to save itself from sharp losses, they added. "The Bank has let the rupee fall to a level but what is the new mark we are just waiting for, and SBP is also keeping an eye on rupee fluctuation versus dollar," they added.
The rupee shed slightly versus euro for buying and selling at Rs 72.80 and Rs 73.10, respectively.



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Kerb buying Rs 59.65
Kerb selling Rs 59.70
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Buying Rs 59.20
Selling Rs 59.22
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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 5.75 7.40 6.25 7.40 6.70
1-Week 3.50 4.25 3.75 4.50 4.00
2-Week 3.50 3.75 4.00 4.25 3.88
1-Month 2.80 3.10 3.30 3.50 3.18
2-Months 2.90 3.20 3.40 3.60 3.28
3-Months 2.90 3.10 3.10 3.25 3.09
4-Months 3.00 3.25 3.50 3.70 3.36
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)
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Tenor Low Bid High Bid Low Offer High Offer Average
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Overnight 6.00 7.40 6.50 7.45 6.84
1-Week 3.75 4.25 4.00 4.75 4.19
2-Week 3.75 4.00 4.25 4.50 4.13
1-Month 3.00 3.25 3.50 3.75 3.38
2-Month 3.10 3.30 3.50 3.70 3.40
3-Month 3.20 3.40 3.60 3.80 3.50
4-Month 3.25 3.50 3.75 4.00 3.63
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 3.90 4.10 4.30 4.50 4.20
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The dollar recorded slight increase in its demand, which pushed the local currency down. The dollar resumed trading at overnight closing rates of Rs 58.58 and Rs 58.68 on buying and selling sides respectively. However, at the end, it moved up and finally closed at Rs 58.60 and Rs 58.70 as its buying and selling rates, respectively, the currency dealers said.
Likewise, the local currency remained under pressure and lost its worth against the pound sterling. The pound's buying rate improved from Monday's closing rate of Rs 107.20 to Rs 107.30, while selling rate increased from Rs 107.50 to Rs 107.60, the dealers added.
The dollar opened at Rs 59.70 (buying) and Rs 59.80 (selling) against same last rate. It did not observe any further change in the second session and closed at Rs 59.70 (buying) and Rs 59.80 (selling).
Pound sterling opened at Rs 107.50 (buying) and Rs 107.70 (selling) against same last closing rate. It did not observe any further change in the second session and closed at Rs 107.50 (buying) and Rs 107.70 (selling).
Canadian dollar opened at Rs 46.50 (buying) and Rs 46.50 (selling) against same previous rate. It did not observe any further change in the second session and closed at Rs 46.50 (buying) and Rs 46.50 (selling).

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