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FOREX KERB WATCH

Comments by OWAIS S. KALIA (Khanani & Kalia)
Updated on  Aug 28, 2000

Comments: In the domestic market, the interference of the SBP to control the free fall in the value of Rupee helped it to recover its lost grounds to some extent. According to the experts, the Rupee lost around 4% against the Greenback during the last month that is supposed to be the highest downfall during the last couple of months. However the experts analyzed that low export proceeds and the growing demand of the Dollar is still a question mark which has to be solved as early as possible to help the Rupee to retrieve it's lost value against the Dollar. Meanwhile the activity remained comparatively slow as many investors remained sideline due to some restrictions.

 

RUPEE/US DOLLAR

This Week

Last Week

% Change

Last Year

% Change

56.075 56.725 .6170 54.15 5.4016

 


Comments: In the domestic market the Pound did not show any change in it's value against the Rupee at the end of the week. The sudden increase in the value of the Dollar also increased the demand of the Pound and more trading of the currency was observed. In the international market, the Pound prolonged with it's descending trend against the Greenback as it lost around half cent, which was recorded to be the lowest during the last three months. However the Pound got some support in the later days of the week from British cross domestic product data which unveiled some signs of rise in the consumer demand. The Pound also lost against Yen but remained strong against Euro.

 

RUPEE/POUND STERLING

This Week

Last Week

% Change

Last Year

% Change

84.35 84.725 -.4426 85.9 -1.8004

 


Comments: The Rupee gained 0.10 Paisa against the Mark in the domestic market at the end of the week. The currency showed an increased demand this week as the buyers took interest after observing an increase in the value of the Greenback. In the international market, the German Mark dipped against the Dollar. The publishing of the German business survey by the IFO Institute revealed a credit squeezing now could choke off growth in the economy which reinforced expectations of an increase in European central bank interest rate increase.

 

RUPEE/DEUTSCHE MARK

This Week

Last Week

% Change

Last Year

% Change

26.425 26.325 .3798 29 -8.8793

 


Comments: An increase in the interest rate by the Central Bank of Japan began to show it's impression as the Yen showed improvements in it's value against the Dollar and remained up in most time of the week. Also the Yen stood stiff against the Pound and Euro this week. The buying of Yen by the Japanese traders also helped to revive the currency to some extent. Moreover, the experts said that the consequences of the rate hike are expected to bear positive impact on the Japanese economy which has to be accompanied by exorbitant changes in the consumer demand and inflation statistics.

 

RUPEE/JAPANESE YEN

This Week

Last Week

% Change

Last Year

% Change

.5335 .519 2.7938 .484 10.2272