THE RUPEE: dollar sharply up

(October 12 2010): Higher demand by the corporate sector, pushed the dollar demand up sharply, resultantly the rupee fell on the currency market on Monday, dealers said. The rupee lost 26 paisa against the dollar for buying at 86.14 and shed 25 paisa for selling at 86.17, they said. In the first Asian session dollar stabilised with risks of a short-term bounce growing despite expectations the Federal Reserve will have to print money to support the economy and international currency policy disarray.INTERBANK MARKET RATES: The dollar fell to a 15-year low of 81.40 yen but later clawed higher. The prospect remained that Japan could come into the market to cap the yen’s rise, though for now some dollar bids in thin trading conditions put a floor under the pair. Spot yuan on Monday ended at its highest closing level against dollar since a landmark revaluation in July 2005, as political pressure on China for a firmer currency was overtaken by renewed weakness in the US dollar. Malaysian ringgit was trading at 3.1000 versus dollar.

The Indian rupee resumed its climb towards 25-month highs, bolstered by firm stocks, stronger regional peers and the dollar’s weakness against major currencies.Foreign portfolio investment in equities of more than dollar eight billion since the start of September has lifted the rupee by 6.3 percent, and traders are betting the rising inflow could strengthen the rupee past 44 to a dollar – a level not seen since August 2008.At 10:42 am (0512 GMT), the partially convertible rupee was at 44.3150/3225, stronger than 44.42/43 at close on Friday.PEN MARKET RATES: In sympathy with the interbank market, the rupee was down by 20 paisa versus dollar for buying and selling at 86.00 and 86.20, they said. The rupee also came under pressure versus euro, shedding 83 paisa for buying and selling at Rs 119.09 and Rs 119.59, they added.

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Open Buying      Rs 86.00
Open Selling     Rs 86.20
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Interbank Closing Rates: Interbank Closing Rates For Dollar on Friday.

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Buying           Rs 86.14
Selling          Rs.86.17
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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    11.50     12.75      12.00       13.00         12.31
1-Week          11.25     12.00      11.90       12.20         11.84
2-Week         11.40     12.15      12.00       12.30         11.96
1-Month        11.75     12.40      12.40       12.50         12.26
2-Months      12.20     12.55      12.50       12.60         12.46
3-Months      12.30     12.65      12.60       12.75         12.58
4-Months      12.50     12.75      12.75       12.85         12.71
5-Months      12.65     12.90      12.85       13.00         12.85
6-Months      12.70     12.90      12.90       13.00         12.88
9-Months      12.75     13.00      12.95       13.10         12.95
1-Year           12.80     13.00      13.00       13.15         12.99
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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    11.50     12.75      12.00       13.00         12.31
1-Week          11.50     12.20      12.10       12.25         12.01
2-Week          11.50     12.20      12.20       12.35         12.06
1-Month        12.25     12.45      12.40       12.60         12.43
2-Months      12.40     12.75      12.75       12.90         12.70
3-Months      12.50     13.00      12.85       13.10         12.86
4-Months      12.60     13.00      13.00       13.10         12.93
5-Months      12.70     13.10      13.10       13.20         13.03
6-Months      12.80     13.25      12.90       13.35         13.08
9-Months      12.90     13.30      13.10       13.40         13.18
1-Year          13.10     13.40      13.20       13.45         13.29
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RUPEE IN LAHORE: The rupee lost 20 paisa against dollar at Lahore currency market on Monday. According to moneychangers, the dollar closed at Rs 86.10 and Rs 86.40 as its buying and selling rates against last Friday’s Rs 85.90 and Rs 86.20, respectively. Likewise, the rupee also depreciated pound sterling. The pound was purchased and sold at Rs 136.00 and Rs 136.70 as compared to previous closing of Rs 135.20 and Rs 136.00, respectively, moneychangers said.

RUPEE IN ISLAMABAD AND RAWALPINDI: The rupee remained firm against the dollar at the open currency markets of Islamabad and Rawalpindi here on Monday.The dollar resumed trading at Rs 86.15 (buying) and Rs 86.50 (selling) against same last rate. It did not observe further change in the evening session and closed at Rs 86.15 (buying) and Rs 86.50 (selling).Pound Sterling opened at Rs 134.05 (buying) and Rs 135.20 (selling) in the morning session. It did not observe further change in the last trading hours and closed at Rs 134.05 (buying) and Rs 135.20 (selling) – Brecorder