. .



FOREX KERB WATCH

Comments by OWAIS S. KALIA (Khanani & Kalia)
Updated on  Jul 24, 2000

Comments: In the domestic market, the Rupee showed a firm note against the dollar on the first two days of the week as no major changes were recorded due to easy supply of dollar in the market. But the lifting of trading band restriction in the inter bank market by the State Bank of Pakistan affected the market. The dollar seems to get stronger against all the leading world currencies. The controlled rate of inflation and the forecasted increasing rate of growth in the American economy helped the dollar to strengthen. It fell slightly against Japanese yen earlier this week as the Japanese exporters exchanged their overseas earnings into their local currency. But the dollar soon recovered after the Bank of Japan retained its zero rate policy. However on Thursday, the dollar again fell against yen and Euro as the experts analyzed that there are no signs of an increase in the interest rates in the near future.

 

RUPEE/US DOLLAR

This Week

Last Week

% Change

Last Year

% Change

55.3 54.895 .7377 53.875 2.6450

 


Comments: In the local market, the British pound gained around 1 Rupee against Pak Rs. in the International market, the British pound rallied its highs as it went up nearly 1% against the US$ due to some speculation regarding the hike of repo rates by the Bank of England. Moreover the concerns over the British government's spending review published earlier this week also supported the sterling. The analysts said that the expectations for higher interest in Britain over the coming months would increase the sterling trade to a considerable extents.

 

RUPEE/POUND STERLING

This Week

Last Week

% Change

Last Year

% Change

83.6 82.6 1.210 85.1 -1.762

 


Comments: In the local market, the Deutsche Mark gained around 0.35 against Pak Rs. in the international market, the German mark showed a low trend. No major changes were recorded. The holding of talks to acquire the US Wireless Telephone Company Voice Stream Wireless Corporation at a cost of $ 53 billion marked as another big news for the German economy after a key tax reform in the country.

.

RUPEE/DEUTSCHE MARK

This Week

Last Week

% Change

Last Year

% Change

26.4 26.425 -094 29.025 -9.043

 


Comments: The Japanese yen showed mix trend against the US$. The conversion of earnings into dollars by the Japanese exporters took the value of yen up by 1%. However the dollar recovered it's lost value and the yen lost it's urgraded value as the Bank of Japan retained it's zero rate policy. However the rising against the Japanese economic recovery weakened the yen here on Friday closing. The yen also fell against Euro by about 1.5% the experts said that the Japanese economy does not seem to be very strong and the investors were taking on investments and weighed on the currency. Also, Japan suffered from two large scale bankruptcies this week which weighed collapses on yen.

 

RUPEE/JAPANESE YEN

This Week

Last Week

% Change

Last Year

% Change

.504 .507 -591 .46 9.565