THE RUPEE: five paisa fall in interbank rates

28 Feb, 2004

The corporate demand kept the rupee under pressure in the interbank market on Friday, which shed five paisa versus the dollar for buying and selling at Rs 57.34 and Rs 57.36, respectively.
The greenback demand was high as banks bought dollars to meet their immediate needs ahead of Ashura holidays, dealers said.
The dollar held its commanding position in the world markets versus other currencies, dealers said. So the other leading currencies drifted lower in the absence of fresh leads, they added.
In the meantime, the International Monetary Fund (IMF) said that the Asian states must avoid governments' intervention in the foreign exchange regime and should introduce more flexibility in their currencies. It said that to help correct the global imbalances, the parity rate must be determined especially by market forces.
Analysts said that it was very interesting to note that China had fixed its currency rate and is enjoying advantage for its export-led economies.
Kerb market rates: The rupee lost three paisa for buying at Rs 57.43 while it maintained its selling rate at Rs 57.50.
The rupee, however, gained versus the euro for buying and selling at Rs 71.43 and Rs 71.46 on declining its demand in the international markets.

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Kerb buying Rs 57.43
Kerb selling Rs 57.50
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Interbank closing rates for dollar on Friday.

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Buying Rs 57.34
Selling Rs 57.36
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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 0.10 0.20 0.30 0.40 0.25
1-Week 0.30 0.45 0.55 0.60 0.48
2-Week 0.50 0.70 0.90 1.10 0.80
1-Month 0.60 0.80 0.90 1.10 0.85
2-Month 0.70 0.90 1.10 1.30 1.00
3-Month 1.25 1.35 1.45 1.60 1.41
4-Month 1.30 1.45 1.65 1.85 1.56
5-Month 1.30 1.50 1.70 1.90 1.60
6-Month 1.40 1.60 1.75 1.95 1.68
9-Month 1.80 2.00 2.20 2.40 2.10
1-Year 2.00 2.20 2.40 2.60 2.30
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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 0.20 0.40 0.50 0.60 0.43
1-Week 0.40 0.60 0.80 1.00 0.70
2-Week 0.60 0.80 1.00 1.20 0.90
1-Month 0.70 0.90 1.10 1.30 1.00
2-Month 0.80 1.00 1.20 1.40 1.10
3-Month 1.35 1.50 1.70 1.90 1.61
4-Month 1.50 1.70 1.90 2.10 1.80
5-Month 1.40 1.60 1.80 2.00 1.70
6-Month 1.50 1.70 1.90 2.10 1.80
9-Month 2.00 2.20 2.40 2.60 2.30
1-Year 2.20 2.40 2.60 2.80 2.50
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There was an increase in dollar's demand, which pushed its rate marginally up. The dollar's trading started at overnight closing levels of Rs 57.45 and Rs 57.55 as its buying and selling rates, respectively.
At the end of trading, the dollar closed at Rs 57.50 and Rs 57.60 on buying and selling counters, respectively, the currency dealers said.
On the contrary, the rupee maintained upward slide and registered further increase in its worth against the pound sterling.
The pound's buying rate declined from Thursday's Rs 107.00 to Rs 106.25 while selling rate moved down from Rs 107.50 to Rs 106.55, the dealers added.
The dollar opened at Rs 57.40 (buying) and Rs 57.50 (selling) against the same last rates. It did not observe any further change in the evening session and closed at Rs 57.40 (buying) and Rs 57.50 (selling).
Pound sterling opened at Rs 107.50 (buying) and Rs 107.70 (selling) against the same overnight value. It did not observe any further change in the second session and closed at Rs 107.50 (buying) and Rs 107.70 (selling).
Canadian dollar opened at Rs 43 (buying) and Rs 43.20 (selling) against the same last rates. Canadian currency did not observe any further change in the evening session and closed at Rs 43 (buying) and Rs 43.20 (selling).

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