THE RUPEE: dollar sharply down in open market

16 Jan, 2008

Minor changes were seen in the official and open market rates on Tuesday as demand for dollars still high by the importers to clear the oil payments, currency analysts said. In the meantime, the rupee managed to gain sharply against dollar in the open market, they said.
In the interbank market, the rupee shed two paisa against dollar for buying at 62.50 and it also dropped by three paisa for selling at 62.55, they said. The rupee resisted sharp decline on the back of interventions by the State Bank of Pakistan (SBP), they said.
During the second day of the week, dollar edged towards a seven-week low against yen on concern that weak bank earnings will push the US economy closer to recession, fuelling expectations for more interest rate cuts by the Fed.

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Open Buying             Rs 62.50
Open Selling            Rs 62.60
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Buying                Rs 62.50
Selling               Rs 62.55
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Repo Rates (Yield p a)
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Tenor      Low Bid   High Bid   Low Offer   High Offer    Average
=================================================================
Overnight    9.90       9.90        9.90        9.95         9.91
1-Week       9.80       9.90        9.85        9.95         9.88
2-Weeks      9.70       9.80        9.75        9.85         9.78
1-Month      9.50       9.70        9.55        9.75         9.63
2-Months     9.40       9.65        9.50        9.75         9.58
3-Months     9.40       9.65        9.55        9.75         9.59
4-Months     9.45       9.70        9.55        9.75         9.61
5-Months     9.45       9.70        9.60        9.75         9.63
6-Months     9.45       9.70        9.60        9.75         9.63
9-Months     9.45       9.70        9.60        9.75         9.63
1-Year       9.45       9.70        9.60        9.80         9.64
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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    9.90        9.95       9.95       10.00         9.95
1-Week       9.85        9.90       9.95       10.00         9.93
2-Weeks      9.80        9.90       9.90       10.00         9.90
1-Month      9.75        9.90       9.85       10.00         9.88
2-Months     9.75        9.90       9.90       10.00         9.89
3-Months     9.75       10.00       9.85       10.25         9.96
4-Months     9.75       10.00       9.90       10.25         9.98
5-Months     9.75       10.00       9.90       10.25         9.98
6-Months     9.90       10.25      10.00       10.50        10.16
9-Months     9.90       10.25      10.10       10.50        10.19
1-Year       9.90       10.25      10.10       10.50        10.19
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The dollar began trading at Rs 62.60 and Rs 62.70 as its buying and selling rate but could not sustain due to decline in its demand. At the end of trading, the dollar closed at Rs 62.50 and Rs 62.60 on buying and selling sides against overnight Rs 62.70 and Rs 62.80 respectively.
On the contrary, the rupee moved down against pound sterling, which was bought and sold at Rs 122.00 and Rs 122.40 against Monday's Rs 121.80 and Rs 122.20.
The dollar opened at Rs 62.30 (buying) and Rs 62.40 (selling) against last rate of Rs 62.50 (buying) and Rs 60.60 (selling). It did not observe any change in the second session and closed at Rs 62.30 (buying) and Rs 62.40 (selling).
Pound sterling opened at Rs 122.25 (buying) and Rs 122.40 (selling) against overnight value of Rs 122.30 (buying) and Rs 122.50 (selling). It did not observe any change in the evening and closed at Rs 122.25 (buying) and Rs 122.40 (selling).

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