THE RUPEE: dollar turns lower

20 Oct, 2010

Rising trend was witnessed on the local currency market on Tuesday as the rupee recovered modestly against dollar, dealers said. The rupee maintained its climb versus dollar, gaining 12 paisa for buying and selling at 85.92 and 85.96, they said. In the second Asian trade dollar gingerly tested firmer ground after a bout of choppiness and players did not rule out an eventual 1.5 cent retreat by euro if some long positions grew stale and unwound ahead of expected US easing.
Spot yuan pulled back from its recent high versus dollar for the second day, as the People's Bank of China fixed a weaker mid-point to allow the yuan to take a breather after recent gains.
Interbank buy/sell rates for taka against the dollar on Tuesday : 70.38/70.45 (previous 70.25/70.40) Call Money Rates: 4.50-6.25 percent (previous 4.50-6.50 percent.
Indian rupee weakened after a steady start as strong dollar demand from importers, weak Asian currencies and choppy local shares outweighed support from foreign fund inflows, mainly towards Coal India share sale.
The issue is expected to draw billions of dollars in overseas demand that could add to upward pressure on the rupee. But, dealers expect the rupee to be boxed in 44.35-44.65 per dollar band on persistent importer dollar demand.


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Open Buying Rs 86.00
Open Selling Rs 86.20
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Buying Rs 85.92
Selling Rs.85.96
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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 11.50 12.75 11.75 13.00 12.25
1-Week 11.25 12.10 12.00 12.20 11.89
2-Week 11.25 12.15 12.00 12.25 11.91
1-Month 11.60 12.30 12.25 12.35 12.13
2-Months 12.20 12.40 12.35 12.50 12.36
3-Months 12.30 12.65 12.55 12.75 12.56
4-Months 12.50 12.75 12.75 12.80 12.70
5-Months 12.55 12.90 12.85 13.00 12.83
6-Months 12.60 12.90 12.80 13.00 12.83
9-Months 12.70 13.00 12.95 13.10 12.94
1-Year 12.80 13.00 13.00 13.15 12.99
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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 11.50 12.80 11.80 13.00 12.28
1-Week 11.25 12.25 12.10 12.30 11.98
2-Week 11.40 12.30 12.10 12.35 12.04
1-Month 12.10 12.50 12.25 12.60 12.36
2-Months 12.40 12.75 12.70 12.90 12.69
3-Months 12.50 13.00 12.85 13.10 12.86
4-Months 12.60 13.00 13.00 13.10 12.93
5-Months 12.70 13.10 13.10 13.20 13.03
6-Months 12.80 13.25 12.90 13.35 13.08
9-Months 12.90 13.30 13.10 13.40 13.18
1-Year 13.10 13.40 13.20 13.45 13.29
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The currency dealers stated that the dollar's demand and supply situation remained intact at its last day position that helped rupee stability against the greenback. The dollar was traded at overnight closing of Rs 86.10 and Rs 86.30, as its buying and selling rates, respectively.
On the contrary the Pak rupee showed strength and appreciated its value by Rs 1.20 on buying side and 50-paisa on selling side against the pound. The pound was purchased and sold at Rs 134.50 and Rs 136.00, as compared to Monday closing of Rs 135.70 and Rs 136.50, respectively.
Pound sterling opened at Rs 134.05 (buying) and Rs 135.20 (selling) in the morning session. It did not observe further change in the last trading hours and closed at Rs 134.05 (buying) and Rs 135.20 (selling).

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