THE RUPEE: all-round fall

The rupee depreciated against dollar and euro on the currency market on Friday in process of trading, dealers said. The rupee extended overnight slide in terms of dollar, dropping 12 paisa for buying at 86.58 and shedding 14 paisa on the selling counter at 86.62, they said.
During the final Asian session euro held steady above its recent one-month low on Friday, but market players were sceptical that it would see a sustained bounce due to uncertainty over whether Italy will make progress on fiscal reforms under new leadership.
According to the currency dealers, the dollar commenced trading at its overnight closing of Rs 86.10 and Rs 86.60 as its buying and selling rates, respectively. Because of fresh buying, the dollar maintained upward slide and finally ended at Rs 86.30 and Rs 86.70 on buying and selling side, respectively.
Likewise, rupee failed to maintain rising trend and lost its worth against the pound sterling. The pound's buying and selling rates were improved from Thursday's closing of Rs 136.30 and Rs 137.30 to Rs 136.80 and Rs 137.50, respectively, the dealers said.
The euro has gained some reprieve after a sell-off earlier in the week when Italian 10-year bond yields shot above the seven percent level that is widely regarded as unsustainable. Relief that yields at an Italian bond sale on Thursday remained below seven percent lent support to the single currency, as did signs of easing political deadlock in Rome and Greece.
Former European Commissioner Mario Monti has emerged as favourite to replace Italian Prime Minister Silvio Berlusconi within days and lead an emergency government. In Greece, former European Central Bank Vice President Lucas Papademos was appointed to head an interim crisis cabinet in Greece.
The euro was little changed from late US trade on Thursday, changing hands at $1.3621 and staying above a one-month low of $1.3484 touched on Thursday. For the week, the euro is still down about 1.5 percent. The dollar versus Indian rupee was available at Rs 50.26, against the Malaysian ringgit, it was trading at 3.1480 and against the Chinese yuan the dollar was at 6.3434.

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Open Buying     Rs 86.58
Open Selling    Rs 86.62
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Buying          Rs 86.50
Selling         Rs 86.70
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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     11.75     11.90      11.80       11.90        11.84
1-Week        11.60     11.80      11.75       11.90        11.76
2-Week        11.65     11.75      11.75       11.85        11.75
1-Month       11.65     11.75      11.80       11.85        11.76
2-Months      11.65     11.80      11.80       11.90        11.79
3-Months      11.65     11.80      11.80       11.90        11.79
4-Months      11.65     11.80      11.80       11.85        11.78
5-Months      11.65     11.80      11.80       11.85        11.78
6-Months      11.65     11.80      11.80       11.85        11.78
9-Months      11.70     11.80      11.80       11.85        11.79
1-Year        11.75     11.85      11.85       11.90        11.84
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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     11.75     11.90      11.90       11.90        11.86
1-Week        11.70     11.85      11.90       12.00        11.86
2-Week        11.75     11.85      11.90       12.00        11.88
1-Month       11.70     11.90      11.85       12.00        11.86
2-Months      11.75     11.90      11.85       11.95        11.86
3-Months      11.80     11.90      11.90       11.95        11.89
4-Months      11.80     11.90      11.90       11.95        11.89
5-Months      11.80     11.90      11.90       12.00        11.90
6-Months      11.85     11.95      11.95       12.00        11.94
9-Months      11.85     12.00      12.00       12.10        11.99
1-Year        11.90     12.00      12.10       12.15        12.04
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