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FOREX KERB WATCH

Comments by OWAIS S. KALIA (Khanani & Kalia)
Updated on  Jul 10, 2000

Comments: Pak Rs remained under pressure against U.S. Dollar during the week under review. The decline of Pak Rs is linked with the speculative buying of green back although the supply of U.S. Dollar is of normal pace. In the international market, the U.S. Dollar showed its firmness against Yen/Euro and weakness against Pound Sterling at the end of this week-end. The continuity of the firmness of the U.S. Dollar has broken since the recovery signs have improved in Europe and Asia.

 

RUPEE/US DOLLAR

This Week

Last Week

% Change

Last Year

% Change

54.95 54.95 .1366 53.8 1.948

 


Comments: In the local market, the British Pound lost around 0.10 against Pak Rs. in the international market, Pound Sterling got firm against U.S. Dollar and dipped against Euro after non-farm pay Prolls rose by a mere 11,000 against forecasts of a 263,000 rise, suggesting the U.S. economy was slowing down at a faster than expected pace. Pound soon recovered its firmness against Euro also as the single currency field to sustain data-led gains above $ 0.95 <EUR> after dealers focused on a rise in U.S. wages and a fall in the UN employment rate.

RUPEE/POUND STERLING

This Week

Last Week

% Change

Last Year

% Change

83.3 83.3 1.215 84.1 -3.364

 


Comments: In the local market, Deutsche Mark gained around 0.10 Paisa against Pak Rs. Chancellor Gerhard Schoreder's tax reform plans have suffered a set back with the failure late on Tuesday by the coalition government and the Conservative opposition to hammer out a compromise on the package. Many key industrial leaders in Germany, and even the International Monetary Fund, have warned of the disastrous effects for the Euro Zone's biggest economy if the reforms, the country's biggest since World War II, do not come into effect as planned next year.

 

RUPEE/DEUTSCHE MARK

This Week

Last Week

% Change

Last Year

% Change

26.725 26.725 1.615 28.3 -6.881

 


Comments: Fresh government data confirmed that Japan's consumer spending, the missing key to recovery in the world's second largest economy, remains depressed by sluggish incomes and a week job market. Some economists suggested that a sharp rise in the bankruptcies of small business amid structural changes in Japan industry may also be hindering a recovery in consumption. The management and the coordination agency said house hold spending, the largest and the most stubbornly weak chunk of the economy, fell 1.9 per cent in May from a year earlier.

 

RUPEE/JAPANESE YEN

This Week

Last Week

% Change

Last Year

% Change

.515 .515 -1.151 .442 14.064