THE RUPEE: falling trend continues in currency market

14 Oct, 2004

The rupee continued its overnight weakness in the open market on Wednesday versus dollar at Rs 59.80 and Rs 59.85 for buying and selling, respectively, dealers said. The dollar at one point touched the new high at Rs 60 in brisk demand for dollars on corporate' buying, dealers said. They observed that rates came under pressure as the dollar crossed a resistant level of Rs 59.50, and added that if dollar's demand persisted, the rupee would face more erosion in the coming days.
The local currency also lost 25 paisa versus euro for buying and selling at Rs 73.45 and Rs 73.75, dealers said.
The dollar demand has increased in the local market for the payment purpose, they said. Oil prices rise in the world pushed the import bills up. Resulting statistics showed that the Consumer Price Index had gone up to 9.18 percent in the first quarter of new fiscal and the Sensitive Price Index rose to 14.02 percent.



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Kerb Buying Rs 59.80
Kerb Selling Rs 59.85
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Buying Rs 59.52
Selling Rs 59.55
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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 7.00 7.40 7.25 7.40 7.26
1-Week 4.75 5.00 5.25 5.50 5.13
2-Week 3.50 3.75 4.00 4.25 3.88
1-Month 2.90 3.00 3.35 3.50 3.19
2-Months 3.00 3.25 3.50 3.75 3.38
3-Months 3.25 3.40 3.50 3.75 3.48
4-Months 3.20 3.40 3.60 3.80 3.50
5-Months 3.25 3.50 3.75 4.00 3.63
6-Months 3.30 3.75 3.75 4.00 3.70
9-Months 3.50 3.70 3.90 4.10 3.80
1-Year 3.75 4.00 4.25 4.50 4.13
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Call Rates (Yield p a)
-----------------------------------------------------------------
Tenor Low Bid High Bid Low Offer High Offer Average
=================================================================
Overnight 7.25 7.40 7.40 7.45 7.38
1-Week 5.00 5.25 5.50 5.75 5.38
2-Week 3.75 4.00 4.25 4.75 4.19
1-Month 3.20 3.50 3.75 3.90 3.59
2-Month 3.25 3.50 3.75 4.00 3.63
3-Month 3.50 3.75 4.00 4.25 3.88
4-Month 3.50 3.75 4.10 4.30 3.91
5-Month 3.60 3.80 4.25 4.50 4.04
6-Month 3.75 4.00 4.30 4.60 4.16
9-Month 4.00 4.25 4.50 4.75 4.38
1-Year 4.00 4.30 4.75 5.00 4.51
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According to the currency dealers, the demand for the dollar remained intact, which helped depreciation in the value of the rupee.
The dollar resumed trading at the overnight closing levels of Rs 59.72 and Rs 59.80 on buying and selling counters, respectively. As a result of expansion in the demand for dollar, its rate started moving up soon after the resumption of trading. At the end, it closed at Rs 59.80 and Rs 59.88 on buying and selling counters respectively, the dealers added.
It is pertinent to mention here that most of the money-changers preferred only buying and avoided sale of the greenback in anticipation of further appreciation in its worth in next couple of days.
On the contrary, the rupee lost its worth on buying side while remained unchanged on selling side in relation to the pound sterling. The pound's buying rate improved from Tuesday's closing rate of Rs 106.50 to Rs 106.70, while the selling rate subdued to its overnight level of Rs 107.00, the dealers added.
The greenback opened at Rs 59.75 (buying) and Rs 59.85 (selling) against the last rate. It remained firm against the rupee, and closed at Rs 59.75 (buying) and Rs 59.85 (selling).
The pound sterling opened at Rs 106.90 (buying) and Rs 107 (selling), and closed at Rs 106.90 (buying) and Rs 107 (selling).
The euro opened at Rs 73.30 (buying) and Rs 73.50 (selling) against the same overnight value. It did not observe any change in the evening session, and closed at Rs 73.30 (buying) and Rs 73.50 (selling).
The Canadian dollar opened at Rs 46.50 (buying) and Rs 46.60 (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 46.60 (selling).

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