Falling trend was seen in the open market on Friday as the rupee shed 10 paisa against dollar for buying and selling at Rs 61.00 and Rs 61.05 on strong demand for US currency, dealers said. Demands for dollar was up as importers' were active to clear bills, purchasing dollars to meet their requirements, currency experts said.
They said that the banks continued dollars' buying from the open market to meet their clients' demand, but in the meantime, the rupee recovers its losses due to high inflows in shape of remittances and Foreign Direct Investment (FDI). It is a seasonal fall because of higher demand for dollar to meet the payments before the out-going fiscal year (2006-07), they said.
High inflows of dollars and no significant improvement in the exports, after several downward movements, it produced no fruitful results. Now, the government is preparing new strategy to make the exports competitive in the international markets, analysts said.
The rupee in terms of euro was at Rs 80.98 and Rs 81.08 for buying and selling, lower by six paisa, they said. In the Asian market, the dollar held near a 4 1/2-year high at the week-end, boosted by a climb in US Treasury yields to a five-year high this week and as investors found a renewed appetite for risk and continued to sell the low-yielding yen.
Traders awaited US price data later in the day to see if Treasury yields would rise further, as well as comments by Bank of Japan Governor Toshihiko Fukui after a policy meeting at which the central bank is widely expected to hold rates at 0.5 percent.
The dollar jumped above the psychologically important 122.20 yen level this week as investors abandoned the possibility of a Federal Reserve rate cut this year, prompting a Treasury sell-off that drove the benchmark 10-year yield to its highest since 2002.
================================
Kerb Buying Rs 61.00
Kerb Selling Rs 61.05
================================
==============================
Buying Rs 60.60
Selling Rs 60.61
==============================
=================================================================
Repo Rates (Yield p a)
-----------------------------------------------------------------
Tenor Low Bid High Bid Low Offer High Offer Average
=================================================================
Overnight 2.00 6.00 3.00 6.50 4.38
1-Week 7.50 8.00 7.60 8.25 7.84
2-Weeks 8.00 8.50 8.25 8.75 8.38
1-Month 8.60 8.75 8.75 8.90 8.75
2-Months 8.70 8.90 8.80 9.00 8.85
3-Months 8.75 8.90 8.85 9.00 8.88
4-Months 8.80 9.00 8.90 9.05 8.94
5-Months 8.85 9.00 8.95 9.10 8.98
6-Months 8.85 9.05 8.95 9.10 8.99
9-Months 8.90 9.10 9.05 9.20 9.06
1-Year 8.90 9.15 9.10 9.25 9.10
=================================================================
Call Rates (Yield p a)
-----------------------------------------------------------------
Tenor Low Bid High Bid Low Offer High Offer Average
=================================================================
Overnight 3.00 6.50 4.00 7.00 5.13
1-Week 8.00 8.50 8.25 8.75 8.38
2-Weeks 8.40 8.75 8.60 8.90 8.66
1-Month 8.90 9.40 9.25 9.50 9.26
2-Months 9.25 9.50 9.40 9.60 9.44
3-Months 9.25 9.60 9.40 9.70 9.49
4-Months 9.40 9.75 9.65 9.90 9.68
5-Months 9.50 9.75 9.75 10.00 9.75
6-Months 9.75 10.00 10.00 10.25 10.00
9-Months 10.00 10.25 10.25 10.50 10.25
1-Year 10.00 10.50 10.25 10.75 10.38
=================================================================
According to the currency dealers, the dollar resumed trading at overnight closing level of Rs 60.90 and Rs 61.00 on buying and selling sides. The opening rate continued to prevail throughout the day and finally closed at the same level, the dealers added.
Similarly, the rupee remained unchanged and traded at Thursday's closing rates of Rs 120.00 and Rs 120.30 as its buying and selling rates, respectively. The pound witnessed fractional change in its worth during the trading but finally closed at the same level, the dealers added.
The dollar resumed trading at Rs 60.90 (buying) and Rs 61 (selling) against last rate of Rs 60.80 (buying) and Rs 60.90 (selling). It did not observe any change in the evening session and closed at Rs 60.90 (buying) and Rs 61 (selling).
Pound Sterling opened at Rs 120 (buying) and Rs 120.20 (selling) against last rate of Rs 119.80 (buying) and Rs 119.90 (selling). It did not observe further change in the evening session and closed at Rs 120 (buying) and Rs 120.20 (selling).