THE RUPEE: all-round gains

All-round gains were seen on the money market on Tuesday as the rupee recovered versus dollar and euro, dealers said. The rupee picked up 22 paisa in relation to dollar for buying and selling at 84.33 and 84.38, they said. Availability of the US currency helped the rupee to recover lost ground in process of trading, they said.
INTERBANK MARKET RATES: In the second Asian trade dollar struggled to pull away from a three-year trough with higher-yielding currencies such as Australian dollar still seen in favour even as markets become more concerned over stretched positions. A steep fall in silver the previous day highlighted just how vulnerable overbought assets can be to a sudden sell-off and suggested investors may be primed to take profits.
The dollar index, which tracks its performance against a basket of major currencies, was last up 0.1 percent at 73.026, still not far off a three-year low of 72.722 hit this week. Its decline in the past few weeks has taken it ever closer to a record low of 70.698 set in March 2008.
"There could be some exhaustion in terms of dollar selling. The fact is, from a pure market positioning perspective, the market is extremely short US dollars," said Mitul Kotecha, head of global FX strategy at Credit Agricole in Hong Kong.
Indian rupee was trading at Rs 44.33 versus dollar, Malaysian ringgit was available at 2.9715 in terms of the greenback and Chinese yuan was at 6.4998 in relation to the US currency.
OPEN MARKET RATES: The rupee gained 10 paisa in relation to dollar for buying at 84.40 while it rose by five paisa for selling at 84.60, they added. The rupee also rose by 33 paisa in terms of euro for buying and selling at Rs 124.45 and Rs 124.95, they said.

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Open Buying     Rs 84.40

Open Selling    Rs 84.60

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Interbank Closing Rates: Interbank Closing Rates For Dollar on Tuesday.

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Buying          Rs 84.33

Selling         Rs.84.38

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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     12.25       12.00       12.50       12.06

1-Week        11.50     12.25       12.40       12.50       12.16

2-Week        11.60     12.50       12.50       12.60       12.30

1-Month       11.75     12.70       12.75       12.85       12.51

2-Months      12.40     13.10       13.00       13.15       12.91

3-Months      12.90     13.15       13.15       13.20       13.10

4-Months      13.00     13.25       13.30       13.35       13.23

5-Months      13.20     13.35       13.35       13.40       13.33

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     11.50     12.25       12.00       12.50       12.06

1-Week        12.00     12.50       12.50       12.60       12.40

2-Week        12.20     12.60       12.50       12.75       12.51

1-Month       12.50     12.95       12.85       13.10       12.85

2-Months      13.00     13.20       13.20       13.30       13.18

3-Months      13.10     13.30       13.30       13.40       13.28

4-Months      13.25     13.50       13.40       13.60       13.44

5-Months      13.40     13.60       13.45       13.65       13.53

6-Months      13.45     13.65       13.55       13.75       13.60

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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RUPEE IN LAHORE: The rupee gained five paisa on buying side while it remained unchanged on selling side in relation to dollar at Lahore currency market on Tuesday.
According to dealers, the dollar commenced trading at overnight Rs 84.50 and Rs 84.65 on buying and selling sides, respectively, while at the end of trading it closed at Rs 84.45 and Rs 84.65 as its buying and selling rates, respectively.
However, the rupee recovered some losses against pound sterling, which declined to Rs 138.80 and Rs 140.20 buying and selling rates respectively, from Monday's Rs 140.50 and Rs 141.00, dealers said.
RUPEE IN ISLAMABAD AND RAWALPINDI: The dollar remained unchanged against rupee at the currency markets of Islamabad and Rawalpindi on Tuesday.
The dollar resumed trading at Rs 84.70 (buying) and Rs 85.20 (selling) against same last rates. It did not observe further change in the evening session and closed at Rs 84.70 (buying) and Rs 85.20 (selling).
Pound sterling opened at Rs 136.15 (buying) and Rs 137.15 (selling) against same previous rates. It did not witness any change in the evening session and closed at Rs 136.15 (buying) and Rs 137.15 (selling).
Copyright Business Recorder, 2011