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FOREX KERB WATCH

Updated on  May 29, 2000

Comments by OWAIS S. KALIA (Khanani & Kalia)

Comments: The U.S. Trade deficit hit a record $-30.2 billion in March as the imported oil prices rose to levels not seen since the gulf crisis of 1990. The trade deficit has also increased five per cent from February's $-28.7 billion. In the local market of Pakistan, Pak Rs lost the month long firmness and lost around six Paisa against dollar. The U.S. Dollar maintained this firmness after the slow trading activity and the increasing demand as the summer vacations are also drawing near.

 

RUPEE/US DOLLAR

This Week

Last Week

% Change

Last Year

% Change

54.345 54.3 .0828 51.575 5.370

 


Comments: In the local market, the British pound gained around 0.10 against Pak Rs. The British economy expanded by 0.5 per cent in the first three months of 2000, above an earlier estimate of 0.4 per cent, but the economists said that the economy was slowing and domestic interest rates had probably peaked. The Office for National Statistics (ONS) said that the upward revision lifted the annual growth rate to 3.1 per cent from an originally reported 2.9 per cent, above the economy's average annual expansion in recent decades of 2.25 per cent.

 

RUPEE/POUND STERLING

This Week

Last Week

% Change

Last Year

% Change

85.10 86.1 -1.161 83.05 2.468

 


Comments: In the local market, Deutsche Mark gained around 1.05 Paisa against Pak Rs. The German economy is under tremendous pressure as the wake of the collapsed merger of dresdner bank with the cross-town rival Deutsche Bank of AG. The dredner bank has now decided to cut 5,000 jobs or 10 per cent of its work force to reduce the costs. This is another set back to the already increasing un-employment in Germany. Dresdner said it was hit with an extraordinary charge of 440 million Euros ($392 million) that it had committed to taking in the first quarter as part of the planned merger.

 

RUPEE/DEUTSCHE MARK

This Week

Last Week

% Change

Last Year

% Change

25.675 26.35 -2.561 28.1 -8.629

 


Comments: The Japanese economy has shown the improved signs as the electronic parts suppliers and the other manufacturers that belong to the new economy industrial sector performed well in the year ended March 31, boosting the over all earnings of the listed Japanese companies. Nearly 30 per cent of the 838 firms that released their fiscal 1999 results by Friday saw their pre-tax profits jump 30 per cent or more on the year. Close to 70 per cent of the 838 companies either posted a growth in profit or a turn to profitability after posting losses in fiscal 1998.

RUPEE/JAPANESE YEN

This Week

Last Week

% Change

Last Year

% Change

.5025 .512 -1.855 .4305 16.724