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FOREX KERB WATCH

Comments by OWAIS S. KALIA (Khanani & Kalia)
Updated on  Jun 26, 2000

Comments: This week remained a very uncertain period for Pak Rs. as the fluctuations and the declining trend finally made Pak Rs to face a fall against greenback. The uncertainty made the investors and traders in panic and the imbalances in demand and supply of the U.S. Dollar occurred. In the international market, the U.S. Dollar has also been under pressure against the Japanese Yen after the fears that the Bank of Japan could intervene to reign in the currency's advance.

 

RUPEE/US DOLLAR

This Week

Last Week

% Change

Last Year

% Change

54.775 54.875 -.182 53.38 2.613

 


Comments: In the local market, the British Pound lost around 0.35 against Pak Rs. Britain's trade deficit with the rest of the world widened to 2.52 billion Pounds in April from a revised deficit of 1.938 billion Pounds in March. The trade gap was slightly narrower than the economists had predicted. The market median forecast was for the trade deficit to be 2.6 billion Pounds in April. The British economy has been in the hot-waters for last three years but now the other economical indicators are getting highly brighter.

 

RUPEE/POUND STERLING

This Week

Last Week

% Change

Last Year

% Change

82.6 83.1 -.601 87.925 -6.056

 


Comments: In the local market, Deutsche Mark lost around 0.65 Paisa against Pak Rs. The German economy is under tremendous pressure because of the unemployment and the rising discord issues among the 11-Euro states since the re-unification of the Eastern and the Western Germany and the fast emerging gape of classes. As Germany is the key factor in and supporter in imposing Euro, the responsibility lies on the German government to justify the efforts of the past government.

 

RUPEE/DEUTSCHE MARK

This Week

Last Week

% Change

Last Year

% Change

26.875 26.625 .938 29.35 -8.432

 


Comments: Major banks in Japan are feeling the pinch again as the rising corporate bankruptcies and the prospect of the country's first rate hike in a decade threaten to puncture a recent earning rebound. A rapid rise in bankruptcies is expected to force banks to take more loan-loss charges, raising the possibilities that the bad-debt problem will come back to hault them. The likely rise in the interest rates as the economy emerges from years of recessions would also squeeze their lending margins.

 

RUPEE/JAPANESE YEN

This Week

Last Week

% Change

Last Year

% Change

.51 .508 .393 .4565 11.719