The rupee inched up with one paisa gain against dollar in the interbank market on Wednesday for buying and selling at Es 60.38 and Rs 60.39, respectively. It is expected that the rupee might recover slightly against the dollar as the supply of the US currency eases, dealers said.
In the world markets, the dollar held near a 26-year low against pound on Wednesday and a two-month trough versus euro, with trade quiet around the US Independence Day holiday as investors awaited key central bank verdicts later in the week.
The Bank of England (BoE) is widely expected to lift rates on Thursday by 25 basis points to 5.75 percent after a two-day meeting, taking them further above the Fed's 5.25 percent policy rate. The European Central Bank (ECB) and its President Jean-Claude Trichet are seen reinforcing expectations for higher rates in the euro zone from 4.0 percent on Thursday as well, with the next move seen most likely in September.
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KERB BUYING Rs 60.95
KERB SELLING Rs 61.05
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Buying Rs 60.38
Selling Rs 60.39
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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 9.40 6.00 9.40 7.58
1-Week 8.40 8.75 8.60 8.85 8.65
2-Weeks 8.50 8.80 8.70 8.90 8.73
1-Month 8.60 8.75 8.75 8.90 8.75
2-Months 8.70 8.90 8.80 9.00 8.85
3-Months 8.75 8.90 8.85 9.00 8.88
4-Months 8.80 9.00 8.85 9.05 8.93
5-Months 8.85 9.00 8.95 9.10 8.98
6-Months 8.85 9.10 8.95 9.10 9.00
9-Months 8.90 9.10 9.00 9.15 9.04
1-Year 8.90 9.10 9.10 9.25 9.09
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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 6.50 9.40 7.00 9.50 8.10
1-Week 8.75 9.25 9.00 9.40 9.10
2-Weeks 8.75 9.25 9.00 9.40 9.10
1-Month 8.90 9.25 9.10 9.50 9.19
2-Months 9.25 9.50 9.40 9.70 9.46
3-Months 9.25 9.60 9.40 9.75 9.50
4-Months 9.40 9.75 9.65 9.90 9.68
5-Months 9.50 9.75 9.75 10.00 9.75
6-Months 9.75 10.00 10.00 10.25 10.00
9-Months 10.00 10.25 10.25 10.50 10.25
1-Year 10.00 10.50 10.25 10.75 10.38
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According to the currency dealers, the dollar resumed trading at Rs 60.95 and Rs 61.05 as its buying and selling rates, respectively. The demand for the dollars remained intact that pushed the rupee value further down. At the end, the dollar closed at Rs 61.00 and Rs 61.10 against Tuesday's closing of Rs 60.90 and Rs 61.00 on buying and selling sides, respectively, the dealers said.
Similarly, the rupee remained under pressure and further moved down against the pound sterling. The pound's buying rate increased from overnight closing of Rs 121.50 to Rs 121.95 while its selling rate moved up from Rs 121.80 to Rs 122.25, they added.
The dollar opened at Rs 60.90 (buying) and Rs 61.00 (selling) against the overnight value. It did not observe any change in the second session and closed at Rs 60.90 (buying) and Rs 61.00 (selling).
Pound Sterling opened at Rs 120.00 (buying) and Rs 120.20 (selling) against the previous rate. It did not witness any change in the evening session and closed at Rs 120.00 (buying) and Rs 120.20 (selling).