Bears dominated the currency market on Saturday as the rupee fell versus dollar in process of higher demand for the US currency, experts said. The rupee dropped eight paisa against dollar for buying at 85.90 and shed nine paisa for selling 85.95, they said.
The US Treasury runs out of cash to pay its bills on August 2 unless the government is legally allowed to borrow more. With the United States long regarded as the most stable country with its currency used as the global reserve, even talk of a US debt default has sent shudders through international markets.
The dollar is likely to trend lower in the week ahead in the aftermath of an abysmal US jobs report on Friday and without clear signs of progress on the approaching US debt ceiling deadline. The rapidly approaching deadline has for now overshadowed debt problems in the euro zone. Friday's jobs report showing only meagre growth in June payrolls added to the gloom surrounding the US dollar as investors see the government and Federal Reserve as failing in efforts to stoke economic growth despite a huge stimulus program and rise in borrowings.
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Open Buying Rs 86.10
Open Selling Rs 86.30
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Buying Rs 85.90
Selling Rs 85.95
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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 13.25 13.90 13.75 13.90 13.70
1-Week 13.00 13.30 13.25 13.35 13.23
2-Week 12.95 13.30 13.30 13.35 13.23
1-Month 13.00 13.30 13.30 13.35 13.24
2-Months 13.00 13.35 13.30 13.40 13.26
3-Months 13.10 13.35 13.35 13.45 13.31
4-Months 13.10 13.40 13.35 13.45 13.33
5-Months 13.15 13.40 13.40 13.50 13.36
6-Months 13.25 13.50 13.50 13.60 13.46
9-Months 13.30 13.60 13.60 13.70 13.55
1-Year 13.40 13.65 13.65 13.75 13.61
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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 13.30 13.90 13.50 13.95 13.66
1-Week 13.00 13.35 13.30 13.40 13.26
2-Week 13.10 13.40 13.35 13.45 13.33
1-Month 13.15 13.40 13.35 13.45 13.34
2-Months 13.15 13.45 13.40 13.50 13.38
3-Months 13.15 13.50 13.45 13.60 13.43
4-Months 13.20 13.50 13.50 13.65 13.46
5-Months 13.25 13.55 13.50 13.65 13.49
6-Months 13.30 13.60 13.50 13.65 13.51
9-Months 13.50 13.70 13.60 13.75 13.64
1-Year 13.50 13.75 13.60 13.90 13.69
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According to dealers, the dollar commenced trading at overnight Rs 85.90 and Rs 86.10 on buying and selling side. Because of increase in demand, the dollar moved up and ended at Rs 86.00 and Rs 86.15 on buying and selling counters, respectively.
Similarly, the rupee declined against pound sterling. The pound's buying and selling rates improved from Friday's Rs 137.85 and Rs 138.40 to Rs 138.00 and Rs 138.70, respectively, dealers said.
The dollar opened at Rs 86.00 (buying) and Rs 86.20 (selling) against same overnight values. It did not observe further change in the second session and closed at Rs 86.00 (buying) and Rs 86.20 (selling).
Pound sterling opened at Rs 138.40 (buying) and Rs 138.50 (selling) against same overnight values. It did not observe further change in the evening session and closed at Rs 138.40 (buying) and Rs 138.50 (selling).