THE RUPEE: dollar sharply up

27 Dec, 2008

Rising demand for dollars pushed the rupee sharply lower on the interbank market on Friday as market reopened after observing one-day holiday on account of Quaid-e-Azam birthday anniversary, dealers said. The rupee lost 22 paisa in relation to dollar for buying at 79.10 and 28 paisa for selling at 79.20 ahead of one more public holiday on account of first death anniversary of Benazir Bhutto, they said.
During the final session, the yen dipped against the euro in thin trade after data showing a sharp slowdown in Japanese inflation underscored fears the world's second-largest economy could sink back into deflation next year. The dollar initially got a boost against the yen as Japanese companies needing dollars to settle deals bought the US currency ahead of the year-end.
Friday was the last business day for many Japanese firms this year and their offices will remain shut until January 5. But the US currency quickly gave up gains against the yen and slid versus the euro as concerns about a prolonged and deep US recession prompted traders to dump the dollar.


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Open Buying Rs 79.00
Open Selling Rs 79.50
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Buying Rs 79.10
Selling Rs 79.20
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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 0.50 3.50 1.00 4.00 2.25
1-Week 8.50 9.50 9.00 10.00 9.25
2-Week 9.50 10.50 10.50 11.50 10.50
1-Month 11.50 12.00 12.50 13.00 12.25
2-Months 12.50 13.50 13.75 14.00 13.44
3-Months 13.25 13.40 13.75 14.00 13.60
4-Months 13.25 13.75 13.75 14.00 13.69
5-Months 13.50 13.75 13.75 14.00 13.75
6-Months 13.60 14.00 14.00 14.25 13.96
9-Months 13.90 14.20 14.25 14.50 14.21
1-Year 14.00 14.25 14.30 14.55 14.28
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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 1.00 8.00 3.00 10.00 5.50
1-Week 10.00 12.00 12.00 13.00 11.75
2-Week 12.00 13.50 14.00 15.00 13.63
1-Month 14.00 16.00 15.00 16.50 15.38
2-Months 15.00 16.00 15.50 16.50 15.75
3-Months 15.00 16.00 16.00 16.50 15.88
4-Months 15.50 16.50 16.00 17.00 16.25
5-Months 16.00 16.50 16.50 17.00 16.50
6-Months 16.00 16.50 16.50 17.00 16.50
9-Months 16.25 16.75 16.75 17.25 16.75
1-Year 16.50 17.00 17.00 17.50 17.00
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The dollar's demand remained intact that helped its further appreciation in the kerb market. The dollar resumed trading at Wednesday closing level of Rs 78.80 and 79.60 as its buying and selling rates, respectively. After moving up, the dollar closed at Rs 79.00 and Rs 80.00 on buying and selling counters, respectively.
However, the rupee maintained its position and remained unchanged against the pound sterling. The pound was traded at previous closing level of Rs 117.00 and Rs 118.00 on buying and selling counters, respectively. However, there was variation in pound's buying rate as some moneychangers quoted it as Rs 116.00.
The dollar opened at Rs 78.70 (buying) and Rs 78.80 (selling) against last closing rate of Rs 78.60 (buying) and Rs 78.70 (selling). It did not observe further change in the second session and closed at Rs 78.70 (buying) and Rs 78.80 (selling).
Pound Sterling opened at Rs 117 (buying) and Rs 118 (selling) against same last rate. It did not observe further change in the second session and closed at Rs 117 (buying) and Rs 118 (selling).

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