The rupee was under pressure against dollar on the currency market on Saturday in process of trading, dealers said. The rupee followed the same pattern, losing nine paisa versus dollar for buying at 87.60 and shed four paisa for selling at 87.65, they added.
The euro's slide highlighted one of the more tumultuous weeks on record for world markets as fear of a Greek debt default and the Federal Reserve's gloomy prognosis for the US economy spurred massive demand for dollars and safe-haven Treasury debt.
The US dollar is having its best month since May 2010 against a broad range of currencies while the Australian dollar, a proxy for global growth, has done the opposite, posting its worst week since May 2010. Besides, financial markets appear to be betting that China will be forced to weaken its currency in the wake of mounting global uncertainties, but until authorities see a material threat to the country's exports, such a move is unlikely.
The yuan, or renminbi, dropped sharply on Friday in the offshore market, shedding nearly two percent and was heading for its biggest weekly decline. The offshore dollar/yuan forwards now imply a 1.33 percent depreciation in a year's time, a complete turnaround from just a week ago.
But these dramatic moves are more a result of position liquidation and adjustments as skittish investors rush to take profits where they can to cover losses elsewhere or simply to preserve capital, traders said.
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Open Buying Rs 89.20
Open Selling Rs 89.40
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Buying Rs 87.60
Selling Rs.87.65
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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 13.40 13.35 13.40 13.35
1-Week 13.15 13.30 13.30 13.35 13.28
2-Week 13.15 13.30 13.30 13.35 13.28
1-Month 13.00 13.25 13.25 13.30 13.20
2-Months 13.00 13.20 13.25 13.30 13.19
3-Months 13.00 13.25 13.25 13.35 13.21
4-Months 13.00 13.25 13.25 13.35 13.21
5-Months 13.10 13.30 13.25 13.35 13.25
6-Months 13.10 13.30 13.25 13.35 13.25
9-Months 13.15 13.30 13.35 13.40 13.30
1-Year 13.20 13.35 13.35 13.40 13.33
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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 13.25 13.40 13.35 13.45 13.36
1-Week 13.15 13.30 13.30 13.35 13.28
2-Week 13.15 13.30 13.30 13.35 13.28
1-Month 13.15 13.30 13.30 13.35 13.28
2-Months 13.10 13.25 13.30 13.35 13.25
3-Months 13.10 13.30 13.30 13.35 13.26
4-Months 13.10 13.30 13.30 13.35 13.26
5-Months 13.15 13.35 13.35 13.40 13.31
6-Months 13.15 13.35 13.35 13.45 13.33
9-Months 13.20 13.40 13.40 13.50 13.38
1-Year 13.25 13.50 13.40 13.60 13.44
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According to the currency dealers, despite the closure of international market, demand for the dollar remained intact in the local market that kept the rupee under pressure. At the end of closing, the dollar was closed higher at Rs 89.40 and Rs 89.70, as its buying and selling rates against the overnight closing of Rs 89.10 and Rs 89.40, respectively.
Similarly, the rupee failed to sustain and lost its worth against the pound sterling. The pound's buying and selling rates were improved from Friday closing of Rs 138.50 and Rs 139.50 to Rs 139.20 and Rs 140.00, respectively, the dealers added.
The dollar opened at Rs 89.00 (buying) and Rs 89.10 (selling) against the last rate. It did not observe further change in the second session and closed at Rs 89.00 (buying) and Rs 89.10 (selling).
Pound Sterling opened at Rs 138.45 (buying) and Rs 138.60 (selling) against the previous rate. It did not observe further change in the evening session and closed at Rs 138.45 (buying) and Rs 138.60 (selling).