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FOREX KERB WATCH

Comments by OWAIS S. KALIA (Khanani & Kalia)
Updated on  Jul 31, 2000

Comments: In the domestic market, the Rupee did not show much movement on the first two days of the week and sustained its last week level. But the continuous rise in the inter bank rate uplifted the open market value of the Dollar as well as it crept up to around 55.80 selling and 55.72 buying. The experts predicted that an increase in the activities of the exporters and the involvement of the importers to hedge their forward transactions are causing noticeable fluctuations and the Rupee is finding it difficult to stabilize its value against the Dollar. Also, the supply of the greenback is fairly short of its growing demand that is keeping the Pak Rupee under pressure, which continued till the closing of the week.

 

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 Pak Rupee showed it's strength as the Rupee gained 10 Paisa against the Pound Sterling at the end of the week. In the international market, the Pound pulled back a little after the publication of an industrial trend report released by the confederation of the British industry. A statement given by a member of Bank of England's monetary policy also hit the sterling as he said that the Pound was "unrealistically high" in the market. However the Pound remained strong against Euro and Yen as it took it's cue here on closing.

 

RUPEE/POUND STERLING

This Week

Last Week

% Change

Last Year

% Change

83.6 82.6 1.210 85.1 -1.762

 


Comments: In the domestic market, the Pak. Rupee lost around 5 Paisa against the German Mark. The Mark again remained silent throughout the week as it did not show any big movement in the international market. The experts analyzed that the acquisition of the US mobile phone group Voice Stream Wireless Corp., and the proceeds from the bond sales are going to affect the Mark and is going to make a considerable impact. The experts further added that this may weaken the German Mark further and the foreign direct investments flow would almost favour the Dollar.

 

RUPEE/DEUTSCHE MARK

This Week

Last Week

% Change

Last Year

% Change

26.4 26.425 -094 29.025 -9.043

 


Comments: In the international market the Yen remained weak against the Dollar. However the last day of the week showed some improvements in its value. The weak stocks helped the Dollar to keep strong grip on the Yen. The chances of growth and economic recovery of the world's second largest economy still is a question mark for the experts and economists. The Bank of Japan is also expected to end it's zero rate policy in August. However the experts are showing their serious concerns over the falling Nikkei stocks, declining retail sales and major bankruptcies in Japan.

 

RUPEE/JAPANESE YEN

This Week

Last Week

% Change

Last Year

% Change

.504 .507 -591 .46 9.565