The rupee continued its fall in relation to dollar on the currency market on Saturday due to rising demand of the US currency, dealers said. The rupee fell by nine paisa in relation to dollar for buying at 86.07 and 86.10 in process of trading, they said.
The more investors fear that heavily indebted euro-zone governments will be unable to repay their debts, the more the yields on their bonds rise, dragging down their value in banks' balance sheets, erasing their capital, and increasing the need for yet more bank bailouts by stronger euro-zone governments.
Europe's banks were in the spotlight on Friday when the European Banking Authority released its bank stress-test results, showing eight banks failed a test of their ability to withstand a prolonged recession.
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Open Buying Rs 86.10
Open Selling Rs 86.30
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Buying Rs 86.07
Selling Rs.86.10
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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 13.00 13.90 13.25 13.90 13.51
1-Week 12.90 13.45 13.40 13.50 13.31
2-Week 13.00 13.40 13.40 13.45 13.31
1-Month 13.00 13.35 13.40 13.45 13.30
2-Months 13.10 13.35 13.40 13.45 13.33
3-Months 13.15 13.35 13.40 13.45 13.34
4-Months 13.15 13.40 13.40 13.50 13.36
5-Months 13.20 13.45 13.45 13.55 13.41
6-Months 13.25 13.50 13.50 13.60 13.46
9-Months 13.30 13.60 13.60 13.70 13.55
1-Year 13.40 13.65 13.65 13.75 13.61
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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 13.00 13.90 13.25 13.90 13.51
1-Week 13.00 13.45 13.40 13.50 13.34
2-Week 13.10 13.45 13.45 13.50 13.38
1-Month 13.15 13.40 13.40 13.45 13.35
2-Months 13.15 13.45 13.40 13.50 13.38
3-Months 13.20 13.50 13.45 13.60 13.44
4-Months 13.20 13.50 13.50 13.65 13.46
5-Months 13.25 13.55 13.50 13.65 13.49
6-Months 13.30 13.60 13.50 13.65 13.51
9-Months 13.50 13.70 13.60 13.75 13.64
1-Year 13.50 13.75 13.60 13.90 13.69
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According to dealers, the dollar resumed trading at overnight Rs 85.90 and Rs 86.10 as buying and selling rates, respectively, but declined to Rs 85.90 and Rs 86.05 on buying and selling side, respectively.
However, the rupee-pound sterling parity remained unchanged as the pound was traded at Friday's rates of Rs 137.80 and Rs 138.60 on buying and selling counters, respectively, dealers said.
The dollar opened at Rs 86.00 (buying) and Rs 86.25 (selling) against same overnight values. It did not observe further change in the second session and closed at Rs 86.00 (buying) and Rs 86.25 (selling).
Pound sterling opened at Rs 138.30 (buying) and Rs 138.45 (selling) against same overnight values. It did not observe further change in the evening session and closed at Rs 138.30 (buying) and Rs 138.45 (selling).