THE RUPEE: dollar inches up

Bearish sentiment persisted on the local currency market on Tuesday as the rupee drifted lower in relation to dollar, dealers said. The rupee was lower by three paisa versus dollar for buying at 85.85 and shed two paisa for selling at 85.88, they said.
Euro bears had been frustrated by the currency's firm support for more than a week at its 200-day moving average just below $1.31 and were giving up their positions for now. Interbank buy/sell rates for taka against the dollar on Monday: 70.69/70.70 (previous 70.69/70.70) Call Money Rates: 16.00-20.00 percent (previous 8.0-22.50 percent).
The yuan rose against dollar on Tuesday after the People's Bank of China set its mid-point near a record high, a signal the government's drive to contain inflation may have triggered a new leg of appreciation. The yuan is only a whisker away from its highest level since its landmark revaluation in July 2005 and is likely to breach that level this week after the PBOC surprised the market by raising official interest rates on Christmas Day. A sign of Beijing's determination to nip in the bud high inflation.
Offshore yuan forwards, the main means by which foreign investors bet on the Chinese currency, may in coming days increasingly reflect greater appreciation over the next year. The yuan was trading at 6.6236 against dollar.
The Indian rupee rose, buoyed by broad losses in dollar versus major currencies, but demand for the dollar from oil firms scrambling to meet month-end import commitments quickly pulled it off its highs. The rupee was trading at Rs 45.13 versus dollar and Malaysian ringgit was trading at 3.0905 in terms of the greenback.

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Open Buying      Rs 85.70
Open Selling     Rs.85.85
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Buying           Rs.85.85
Selling          Rs.85.88
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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     12.40      13.75     12.50        13.90       13.14
1-Week        11.60      12.95     12.90        13.00       12.61
2-Week        11.65      12.95     12.90        13.00       12.63
1-Month       11.90      12.90     12.90        13.00       12.68
2-Months      12.25      13.00     12.80        13.10       12.79
3-Months      12.60      13.15     13.10        13.25       13.03
4-Months      12.70      13.15     13.10        13.25       13.05
5-Months      12.75      13.20     13.20        13.35       13.13
6-Months      13.05      13.30     13.25        13.40       13.25
9-Months      13.10      13.40     13.30        13.60       13.35
1-Year        13.25      13.50     13.40        13.60       13.44
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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     12.40      13.75     12.50        13.90       13.14
1-Week        12.50      13.10     13.00        13.25       12.96
2-Week        12.25      13.20     13.10        13.30       12.96
1-Month       12.50      13.25     13.10        13.40       13.06
2-Months      12.75      13.40     13.20        13.50       13.21
3-Months      12.80      13.50     13.25        13.75       13.33
4-Months      12.90      13.50     13.30        13.75       13.36
5-Months      13.00      13.50     13.40        13.75       13.41
6-Months      13.10      13.60     13.40        13.90       13.50
9-Months      13.25      13.60     13.50        13.90       13.56
1-Year        13.25      13.75     13.60        14.00       13.65
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