THE RUPEE: falling trend

15 Mar, 2012

The rupee drifted lower against the dollar in the interbank dealings while, it showed no change versus the greenback on the open market on Wednesday, dealers said. The rupee shed five paisa in relation to the dollar for buying and selling at 90.77 and 90.79, they said.
The US 2-year Treasury yields hit a 7-1/2-month high after solid retail sales data, making the dollar less attractive as a funding currency for carry trades. Tokyo exporters were also reluctant to sell the dollar now, expecting more strength, traders said. Interbank buy/sell rates for the taka against the dollar on Wednesday: 81.75-81.80 (previous 81.76-81.79).
Call Money Rates: 11.00-13.50 percent (previous 07.00-14.00 percent). The yuan closed lower versus the dollar on Wednesday, weakening 0.61 percent this month as the People's Bank of China (PBOC) pushed forward with more active two-way trading of the Chinese currency via its mid-point. Spot yuan closed at 6.3323 against the dollar, weaker than 6.3270 at Tuesday's close and dropping 0.61 percent from 6.2936 at the end of last month - about the same amount of loss the PBOC has permitted for its midpoint in the same period. The dollar was trading against the Indian rupee at Rs 49.92 and at 3.0450 in terms of the Malaysian ringgit.



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Open Buying Rs 90.80
Open Selling Rs 91.00
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Buying Rs 90.77
Selling Rs 90.79
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Likewise, the rupee could not maintain its day earlier position and was declined against the pound sterling. The pound was purchased and sold at Rs 142.00 and Rs 142.50 as compared to Tuesday closing of Rs 141.50 and Rs 142.25, respectively, the dealers added.
The dollar opened at Rs 91 (buying) and Rs 91.20 (selling) against same previous rate. It did not observe any further change in the second session and closed at Rs 91 (buying) and Rs 91.20 (selling).
Pound sterling opened at Rs 142 (buying) and Rs 142.50 (selling) against same previous rate. It did not observe further change in the evening session and closed at Rs 142 (buying) and Rs 142.50 (selling).

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