THE RUPEE: minor changes

Some little changes were seen on the money market on Tuesday as the dollar's supply matched with the rising demand by the importers, dealers said. The rupee moved slightly after picking one paisa against dollar for buying and selling at 85.63 and 85.68, they said.
INTERBANK MARKET RATES: In the second Asian trade dollar struggled to regain its footing after a steep decline, while the euro hovered near a one-month high as investors bet the Federal Reserve will stick to its easing course even as the European Central Bank talks of tightening. Fed Chairman Ben Bernanke is expected to remain cautious about the economy at his semi-annual testimony before the Senate Banking Committee starting at 1500 GMT. In the words of New York Federal Reserve Bank President William Dudley: "We're still very far from achieving our dual mandate of maximum sustainable employment and price stability."
This puts the Fed at odds with other major central banks, which are starting to worry about rising price pressure, and reinforces the view that the European Central Bank will probably hike rates before the Fed.
The dollar index, which tracks its performance against a basket of major currencies, edged up 0.1 percent to 76.948, but still remained close to a 3-1/2 month low of 76.756 hit on Monday. Indian rupee was trading at Rs 45.11 versus dollar, Malaysian ringgit was available at 3.0385 in relation to the US currency and Chinese yuan was at 6.5703 in terms of the greenback.
OPEN MARKET RATES: The rupee shed five paisa in relation to dollar for buying at 85.65 and it retained its selling at 85.80, they added. The rupee also fluctuated slightly versus euro, gaining three paisa for buying and selling at Rs 117.95 and Rs 118.45, they said.

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Open Buying     Rs 85.65

Open Selling    Rs.85.80

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

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Buying          Rs.85.63

Selling         Rs.85.68

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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     12.50      13.15      12.60       13.25       12.88

1-Week        11.70      12.85      12.80       12.90       12.56

2-Week        11.80      12.85      12.75       12.90       12.58

1-Month       12.05      12.90      12.90       13.00       12.71

2-Months      12.50      13.15      13.15       13.25       13.01

3-Months      12.90      13.20      13.20       13.30       13.15

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     12.50      13.15      12.60       13.25       12.88

1-Week        12.00      12.90      12.85       13.00       12.69

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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RUPEE IN LAHORE: The Pak rupee could not show stability and lost ten-paisa on buying side, while it remained unchanged on selling side in relation to the greenback in the open currency market on Tuesday.
According to the currency dealers, the dollar resumed trading at overnight closing of Rs 85.40 and Rs 85.70, as its buying and selling rates, respectively. Because of weak supply, the dollar moved up on buying side and ended at Rs 85.50, while its selling rates remained intact at last day closing of Rs 85.70, the dealers said.
The rupee also maintained downward slide and further declined against the pound sterling. The pound's buying and selling rates were increased to Rs 138.50 and Rs 139.00, as compared to previous closing of Rs 137.50 and Rs 138.50, respectively, they added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The dollar-rupee parity remained unchanged at the currency exchange establishments of Islamabad and Rawalpindi here on Tuesday.
The dollar opened at Rs 85.90 (buying) and Rs 86.20 (selling) against the last rate. It did not observe further change in the evening session and closed at Rs 85.90 (buying) and Rs 86.20 (selling).
Pound Sterling opened at Rs 136.35 (buying) and Rs 136.75 (selling) against the previous rate. It did not witness any change in the evening session and closed at Rs 136.35 (buying) and Rs 136.75 (selling).
Copyright Business Recorder, 2011