Two paisa recovery was seen in the rupee's value against the dollar in the interbank market for buying and selling at 59.96 and 59.98, dealers said on Wednesday. Heavy import bills increased the dollar buying by the corporate sector as the third quarter of the current fiscal year is near to close.
As a result of rising interest of the foreign investors, inflows' position improved and strengthened the rupee's value versus the US currency, money market analysts said.
In the globe level dollar recovered against most of the currencies as the US Federal Reserve raised interest rates. According to a report, hopes of higher US interest rates have been supportive of the US currency in the recent months because dollar-denominated assets thereby become more attractive for the investors.
The rupee, however, maintained its firmness, gaining 15 paisa more for buying and selling at 71.95 and Rs 72.05. The dollar rose from the bottom after the rise in the US interest rate and the ray of hope is still there for more increase in the rates by the Federal Reserve, dealers said.
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Buying Rs 60.30
Selling Rs 60.35
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Buying Rs 59.96
Selling Rs 59.98
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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 8.50 8.25 8.75 8.13
1-Week 8.15 8.40 8.25 8.45 8.31
2-Week 8.10 8.35 8.30 8.40 8.29
1-Month 8.20 8.50 8.30 8.60 8.40
2-Months 8.20 8.40 8.30 8.40 8.33
3-Months 8.25 8.40 8.35 8.50 8.38
4-Months 8.25 8.40 8.40 8.60 8.41
5-Months 8.30 8.50 8.45 8.60 8.46
6-Months 8.35 8.60 8.45 8.75 8.54
9-Months 8.40 8.70 8.60 8.75 8.61
1-Year 8.60 8.80 8.75 8.90 8.76
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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 7.50 8.75 7.75 9.00 8.25
1-Week 8.75 9.00 9.00 9.25 9.00
2-Week 8.75 8.90 9.00 9.25 8.98
1-Month 8.75 9.25 9.00 9.50 9.13
2-Months 8.80 9.40 9.10 9.50 9.20
3-Months 8.90 9.40 9.30 9.70 9.33
4-Months 9.00 9.50 9.25 9.75 9.38
5-Months 9.10 9.60 9.35 9.80 9.46
6-Months 9.10 9.60 9.35 9.80 9.46
9-Months 9.50 10.00 9.80 10.25 9.89
1-Year 9.60 10.00 9.80 10.25 9.91
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According to the currency dealers, the dollar resumed trading at overnight closing rates of Rs 60.18 and Rs 60.28 as its buying and selling rates, respectively. As a result of slight increase in dollar's demand, its rate moved up and closed at Rs 60.20 and Rs 60.30 on buying and selling sides, respectively.
On the contrary, the local currency maintained upward trend and recovered its overnight loss against the pound sterling. The pound's buying rate moved down from Tuesday's closing rate of Rs 104.80 to Rs 104.30 while selling rate declined from Rs 105.10 to Rs 104.80, the dealers added.
The dollar opened at Rs 60.25 (buying) and Rs 60.35 (selling) against the last rate of Rs 60.00 (buying) and Rs 60.20 (selling). It did not witness any further change in the second session and closed at Rs 60.25 (buying) and Rs 60.35 (selling).
Pound sterling opened at Rs 104.30 (buying) and Rs 104.60 (selling) against the last rate of Rs 104.70 (buying) and Rs 105.00 (selling). It did not observe any further change by the end of evening spell and closed at Rs 104.30 (buying) and Rs 104.60 (selling).