The dollar extended its rise versus the rupee on the currency market on Saturday following strong buying by the importers, dealers said. Market-men said that the all major banks bought approximately 50-70 million dollars to meet the importers' demand to clear the payments.
After a long time, nearly 40-50 paisa difference was seen between the open and interbank market rates, they said. Now, how the money market will move would be clear next week, if the dollar buying persisted the rupee may lose its value in the open market, too, they said.
Spiegel Online reported euro zone finance ministers were meeting in Luxembourg on Friday to discuss Greece, including the issue of its possible exit from the currency bloc. Greece, through its Finance Ministry, later denied it was considering leaving the euro zone. The Greece headlines, however, were enough to send investors further unwinding long positions on the euro, which hit a low of $1.43150 -- its weakest level since April 19 on electronic trading platform EBS.
Market participants said the pullback in the euro was a natural correction in a currency that, at one point, had surged more than 10 percent so far this year.
"What's happening today also reflects the fact that markets are increasingly unwilling to hold long euro positions into the weekend," said Vassili Serebriakov, senior currency strategist, at Wells Fargo in New York.
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Open Buying Rs.84.75
Open Selling Rs.84.90
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Buying Rs.85.20
Selling Rs.85.25
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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 11.25 12.75 11.50 13.00 12.13
1-Week 11.50 12.30 12.15 12.40 12.09
2-Week 11.60 12.40 12.30 12.50 12.20
1-Month 11.75 12.70 12.65 12.75 12.46
2-Months 12.40 12.90 12.85 13.00 12.79
3-Months 12.75 12.90 12.95 13.05 12.91
4-Months 12.85 13.00 13.00 13.20 13.01
5-Months 13.00 13.35 13.25 13.40 13.25
6-Months 13.20 13.35 13.30 13.40 13.31
9-Months 13.25 13.50 13.50 13.60 13.46
1-Year 13.40 13.60 13.50 13.65 13.54
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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 11.25 12.90 11.50 13.00 12.16
1-Week 11.90 12.40 12.25 12.50 12.26
2-Week 12.20 12.50 12.40 12.60 12.43
1-Month 12.50 12.85 12.80 12.90 12.76
2-Months 12.90 13.10 13.10 13.25 13.09
3-Months 13.10 13.30 13.30 13.40 13.28
4-Months 13.25 13.40 13.30 13.50 13.36
5-Months 13.30 13.50 13.40 13.60 13.45
6-Months 13.35 13.55 13.50 13.65 13.51
9-Months 13.50 13.65 13.60 13.70 13.61
1-Year 13.50 13.75 13.60 13.85 13.68
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According to the currency dealers, the rupee opened on a negative sign and remained under pressure throughout the day. At the end of trading, the dollar was closed higher at Rs 84.80 and Rs 85.00, as its buying and selling rates against the overnight closing of Rs 84.60 and Rs 84.75, respectively.
However, the rupee-pound sterling parity remained unchanged at its day earlier closing level amid low trading activity in the local market. The pound was purchased and sold at its Friday closing of Rs 138.70 and Rs 139.50 on buying and selling sides, respectively, the dealers said.
The dollar resumed trading at Rs 84.50 (buying) and Rs 85.00 (selling) against the last rate. It did not observe further change in the evening session and closed at Rs 84.50 (buying) and Rs 85.00 (selling).
Pound Sterling opened at Rs 136.50 (buying) and Rs 137.50 (selling) against the previous rate. It did not witness any change in the evening session and closed at Rs 136.50 (buying) and Rs 137.50 (selling).