THE RUPEE: falling trend observed

18 Nov, 2005

Divergent trend was seen in the open market on Thursday amid modest trading, dealers said.
Sliding trend was again witnessed in the open market as the rupee shed five paisa against the dollar for buying at 60.05 and slid 10 paisa for selling at 60.15, respectively.
Due to dollar buying pressure, the rupee lost its value modestly, dealers said. Banks were purchasing dollar from the open market after facing dearth of dollar like situation, they observed.
Versus the euro, the rupee gained 25 paisa for buying and selling at Rs 69.70 and Rs 69.80 in process of trading, they said.
In the world markets, the dollar has given up its overnight weakness, gaining lost ground versus the leading currencies as an economic data showed that the US was attracting more than enough investment to finance its gaping trade deficit.
Net flows of foreign capital into the US assets surged to a record 101.9 billion dollars in September, well above expectations and more than enough to cover a record trade deficit of 66.1 billion dollars that month.


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Kerb Buying Rs 60.05
Kerb Selling Rs 60.15
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Buying Rs 59.86
Selling Rs 59.87
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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 2.00 7.00 2.50 7.25 4.69
1-Week 6.50 7.50 7.75 8.25 7.50
2-Week 7.50 7.75 8.00 8.25 7.88
1-Month 7.75 7.90 8.00 8.15 7.95
2-Months 8.10 8.25 8.30 8.40 8.26
3-Months 8.20 8.30 8.25 8.50 8.31
4-Months 8.25 8.35 8.40 8.60 8.40
5-Months 8.35 8.40 8.50 8.65 8.48
6-Months 8.40 8.45 8.55 8.70 8.53
9-Months 8.50 8.55 8.60 8.75 8.60
1-Year 8.55 8.60 8.65 8.80 8.65
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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 2.50 6.75 3.75 7.00 5.00
1-Week 6.50 7.50 8.25 8.75 7.75
2-Week 7.75 8.75 8.50 9.25 8.56
1-Month 8.25 9.25 8.75 9.50 8.94
2-Months 8.25 9.25 8.75 9.75 9.00
3-Months 8.50 9.60 9.00 10.00 9.28
4-Months 8.70 9.25 9.20 10.05 9.30
5-Months 8.90 9.50 9.45 10.10 9.49
6-Months 8.70 9.50 9.20 10.15 9.39
9-Months 8.90 9.75 9.50 10.20 9.59
1-Year 9.25 10.00 9.70 10.50 9.86
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According to the currency dealers, the dollar witnessed increase in its demand, which pushed down value of the local currency. The dollar's trading commenced at Rs 59.95 and Rs 60.05 on buying and selling counters, respectively. The greenback kept moving up during the day and finally closed at Rs 60.00 and Rs 60.10 on buying and selling sides, respectively against Rs 59.90 and Rs 60.10 of Wednesday, the dealers added.
However, the local currency maintained upward slide and further improves its value against the pound sterling. The pound's buying rate moved down from previous closing rate of Rs 103.40 to Rs 103.00 while selling rate declined from Rs 103.90 to Rs 103.60, the dealers added.
The dollar opened at Rs 59.85 (buying) and Rs 59.95 (selling) against same previous rate. It did not observe any further change by the end of second session and closed at Rs 59.85 (buying) and Rs 59.95 (selling).
Pound sterling opened at Rs 103.25 (buying) and Rs 103.55 (selling) against same previous rate. It did not observe any change in the second session and closed at Rs 103.25 (buying) and Rs 103.55 (selling).

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