THE RUPEE: interbank rates in tight range

13 Dec, 2005

The rupee-dollar official parity rates stuck in tight range in the interbank market on Monday, but somehow retained the week-end levels for buying and selling at 59.78 and 59.79, respectively. In fact, the rupee is under pressure due to year-end payments and rising demand of dollar by the Haj pilgrims, currency analysts said.
Besides, stronger position of the dollar in the international markets was also another factor, which hurt the rupee's firmness slightly, they said.
In the world markets, the yen slumped to a record low against the euro and slipped versus the dollar on Monday as investors in Japan keep selling the low-yielding yen for currencies offering higher returns.
Overall, the dollar eased ahead of the Federal Reserve's policy meeting on Tuesday, with the market focusing on whether the central bank will signal an imminent end to its 18-month campaign of tightening credit.
The rupee also came under pressure versus the euro, losing 25 paisa for buying and selling at Rs 70.75 and Rs 70.85, respectively.
Continued firmness of the single European currency in the globe, giving an indication that the euro may cross Rs 71 level in the coming days, they said.



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Kerb Buying Rs 60.08
Kerb Selling Rs 60.15
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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 5.50 7.75 6.00 8. 25 6.88
1-Week 7.00 7.60 8.00 8. 25 7.71
2-Week 7.60 7.85 8.00 8. 15 7.90
1-Month 8.15 8.25 8.30 8. 40 8.28
2-Months 8.15 8.25 8.25 8. 40 8.26
3-Months 8.15 8.25 8.30 8. 45 8.29
4-Months 8.20 8.30 8.35 8. 45 8.33
5-Months 8.25 8.35 8.40 8. 50 8.38
6-Months 8.30 8.40 8.45 8. 60 8.44
9-Months 8.40 8.50 8.55 8. 60 8.51
1-Year 8.50 8.55 8.60 8. 70 8.59
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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 7.00 7.50 7.50 8.50 7.63
1-Week 7.75 8.00 7.75 8.90 8.10
2-Week 7.75 8.00 8.50 9.00 8.31
1-Month 8.75 9.25 9.25 9.50 9.19
2-Months 8.50 9.00 8.90 9.40 8.95
3-Months 8.60 9.00 9.25 9.60 9.11
4-Months 8.75 9.25 9.35 9.75 9.28
5-Months 8.90 9.50 9.50 10.00 9.48
6-Months 9.00 9.60 9.50 10.00 9.53
9-Months 9.00 9.75 9.60 10.20 9.64
1-Year 9.25 0.00 9.90 10.50 9.91
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According to the currency dealers, the dollar remained under selling pressure, which helped rupee improve its value. The dollar resumed trading at Saturday's closing level of Rs 60.08 and Rs 60.18 as its buying and selling rates, respectively. However, soon after commencement of trading, it started declining and finally closed at Rs 60.05 and Rs 60.15, on buying and selling counters, respectively, the dealers added.
However, the rupee continued previous week's downward trend and lost its value against the pound sterling. The pound's buying rate improved from previous week's closing of Rs 104.90 to Rs 105.50 while its selling rate increased from Rs 105.20 to Rs 105.80, the dealers added.
The dollar opened at Rs 60.10 (buying) and Rs 60.20 (selling) against last week's rate of Rs 60.35 (buying) and Rs 60.45 (selling). It did not observe any further change in the second session and closed at Rs 60.10 (buying) and Rs 60.20 (selling).
Pound sterling opened at Rs 105 (buying) and Rs 105.50 (selling) against last week's rate of Rs 103.70 (buying) and Rs 104 (selling). It did not witness any further change in the evening spell and closed at Rs 105 (buying) and Rs 105.50 (selling).

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