THE RUPEE: dollar moves both ways

01 Aug, 2008

The rupee managed to recover some lost ground against dollar in the interbank market on Thursday, dealers said. The rupee gained 10 paisa versus dollar for buying at 71.45 and it also rose by 10 paisa for selling at 71.50 despite improved dollars' demand, they said. The rupee may move both ways in terms of dollar in the coming days. In the meantime, inflows in shape of remittances may help the rupee to expand its ground, they added.
During the fourth Asian trading session dollar held its ground close to one-month highs against euro and yen amid concerns that Europe and Asia are being hit hard by the US economic slowdown, dealers said. The dollar was steady at 108.09 versus yen in Tokyo morning trade compared with 108.12 in New York on Tuesday. The euro was flat at 1.5575 dollars and little changed at 168.35 yen against 168.39. "The market is optimistic that the US economy, while still weak, is holding up better than economies elsewhere," said Kenichi Yumoto, vice head of forex at Societe Generale, adding that investors were generally "dollar bullish."


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Open Buying Rs 72.10
Open Selling Rs 72.30
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Buying Rs 71.45
Selling Rs 71.50
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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 4.00 10.00 4.50 10.50 7.25
1-Week 10.50 10.75 10.75 11.00 10.75
2-Week 10.50 10.75 10.75 11.00 10.75
1-Month 10.90 11.25 11.20 11.40 11.19
2-Months 11.60 12.00 11.80 12.20 11.90
3-Months 11.80 12.10 12.00 12.25 12.04
4-Months 11.80 12.10 12.00 12.25 12.04
5-Months 11.85 12.20 12.10 12.30 12.11
6-Months 11.90 12.25 12.15 12.35 12.16
9-Months 12.00 12.25 12.15 12.35 12.19
1-Year 12.10 12.25 12.20 12.40 12.24
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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 5.00 12.00 5.50 13.00 8.88
1-Week 11.00 13.50 12.00 14.00 12.63
2-Week 11.50 13.75 12.50 14.25 13.00
1-Month 12.50 14.00 13.00 14.50 13.50
2-Months 12.50 14.00 13.00 14.50 13.50
3-Months 13.00 14.50 13.50 15.00 14.00
4-Months 13.00 14.50 13.75 15.00 14.06
5-Months 13.00 14.75 14.00 15.25 14.25
6-Months 13.50 15.00 14.00 15.50 14.50
9-Months 13.75 15.00 14.50 15.50 14.69
1-Year 14.00 15.50 14.75 15.75 15.00
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The dollar, because of weak supply, marginally increased on buying side, while its selling rate stayed glued to overnight closing level. The dollar, at the end of trading, moved up and closed at Rs 72.15 against Rs 72.40 as compared previous closing of Rs 72.10 and Rs 72.40 on buying and selling counters, respectively.
However, the rupee stayed unchanged on buying side while it marginally increased against the British pound. The pound was purchased and sold at Rs 142.00 and Rs 142.90 against the Wednesday closing of Rs 142.20 and Rs 143.00, respectively.
The dollar resumed trading at Rs 72.10 (buying) and Rs 72.30 (selling) against the overnight value. It did not observe any change in the second spell and closed at Rs 72.10 (buying) and Rs 72.30 (selling).
Pound Sterling opened at Rs 142.20 (buying) and Rs 142.70 (selling) against the previous rate. It did not observe any change in the evening session and closed at Rs 142.20 (buying) and Rs 142.70 (selling).

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