THE RUPEE: dollar slides

04 Mar, 2011

The rupee was higher against dollar, it, however, shed its value in relation euro on the currency market on Thursday, dealers said. The rupee maintained its upward trend against dollar gaining 10 paisa for buying and selling at 85.50 and 85.55, they said.
The euro has rallied nearly three percent from a low hit on February 14, as investors expect ECB chief Jean-Claude Trichet to sharpen the central bank's anti-inflation rhetoric after its policy meeting as oil prices continue to soar. Some market players think the bank will stop providing unlimited three-month liquidity in the second quarter, switching the operations back to capped-limit, variable rate tenders -- a step forward in exiting from its easy policy to pave the way for a rate hike.
But others see the chance of the bank extending the measure in light of lingering worries about bank funding in some euro zone periphery countries -- an outcome that could set back market expectations of a rate hike by August. Indian rupee was available at Rs 44.94 versus dollar, Malaysian ringgit was available at 3.0307 in relation to the greenback and Chinese yuan was trading at 6.5688 in terms of the US currency.


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Open Buying Rs 85.50
Open Selling Rs 85.55
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Buying Rs 85.40
Selling Rs 85.60
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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 12.25 13.25 12.50 13.40 12.85
1-Week 11.50 12.90 12.90 13.00 12.58
2-Week 11.60 12.90 12.90 13.00 12.60
1-Month 11.90 12.95 12.90 13.00 12.69
2-Months 12.35 13.15 13.15 13.25 12.98
3-Months 12.40 13.20 13.20 13.30 13.03
4-Months 13.00 13.30 13.25 13.35 13.23
5-Months 13.20 13.45 13.40 13.50 13.39
6-Months 13.35 13.50 13.45 13.55 13.46
9-Months 13.40 13.60 13.50 13.65 13.54
1-Year 13.45 13.60 13.55 13.65 13.56
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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 12.25 13.20 12.50 13.40 12.84
1-Week 12.00 13.10 12.95 13.20 12.81
2-Week 12.40 13.10 13.00 13.20 12.93
1-Month 12.60 13.20 13.00 13.30 13.03
2-Months 12.90 13.40 13.30 13.50 13.28
3-Months 13.10 13.60 13.40 13.70 13.45
4-Months 13.25 13.65 13.45 13.75 13.53
5-Months 13.40 13.70 13.50 13.75 13.59
6-Months 13.50 13.75 13.70 13.90 13.71
9-Months 13.60 13.80 13.75 13.95 13.78
1-Year 13.50 13.90 13.80 14.00 13.80
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According to the currency dealers, the dollar resumed trading at its overnight closing of Rs 85.50 and Rs 85.70 on the buying and selling sides, respectively. The dollar witnessed marginal fluctuation in its worth during the day but finally closed at the opening level, the dealers said.
However, the rupee failed to sustain and lost its value in relation to the British pound. The pound's buying and selling rates were increased from Wednesday closing of Rs 138.50 and Rs 139.00 to Rs 138.60 and Rs 139.30, respectively, the dealers added.
The dollar opened at Rs 85.95 (buying) and Rs 86.20 (selling) against the last rate. It did not observe further change in the evening session and closed at Rs 85.95 (buying) and Rs 86.20 (selling).
Pound Sterling opened at Rs 136.30 (buying) and Rs 136.75 (selling) against the previous rate. It did not witness any change in the evening session and closed at Rs 136.30 (buying) and Rs 136.75 (selling).

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