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FOREX KERB WATCH

Comments by OWAIS S. KALIA (Khanani & Kalia)
Updated on  Sep 25, 2000

Comments: In the domestic market, after a tranquil and rigid last week, the market almost went wild as the Rupee touched it's lowest value and the Dollar crossed the Rs. 60 barrier which is recorded to be the highest after the removal of the unofficial cap by the SBP. This trend persisted for the first three days of the week after which the SBP had to intervene to control the further decline in the Rupee as it sold 35 million Dollars. As a matter of fact, the bankers took keen interest in buying Dollars after observing a steep decline in the Rupee and to avert further losses. Also some experts said that the payments of corporate debts, payments of national debts accruing at the end of September, payments of shipping and airlines bills were some of the other factors that resulted in hectic demand of the green back in the market.

RUPEE/US DOLLAR

This Week

Last Week

% Change

Last Year

% Change

60.125

57.385

4.7747

54.425

10.4731

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Comments: In the domestic market, the Rupee gained Rs. 6.35 at the end of the week. The Sudden rise of Pound in the international market on Friday, showed it's immediate impact on the domestic market and the Rupee. However, the Pound recovered to some level on Saturday.

In the international market, the Pound rallied to it's one month highs versus the Dollar. The US, Japanese and European central banks intervened for the first time on Friday by Euro buying.

RUPEE/POUND STERLING

This Week

Last Week

% Change

Last Year

% Change

87.2 81 7.6543 89.375 -2.4335
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Comments: In the domestic market, the Rupee gained Rs. 1.65 against Mark at the close of the markets. Despite of increase in the value, the currency showed normal trading and no major move by the investors was observed.

In the International market, the Euro support move taken by the European central bank also helped the Mark to upgrade itself against all the major currencies in the market especially against the Dollar.

RUPEE/DEUTSCHE MARK

This Week

Last Week

% Change

Last Year

% Change

26.95 25.3 6.5217 29.125 -7.4678
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Comments: In the international market, the Yen remained firm against the Dollar and gained record highs against the Australian Dollar. It also gained against Pound and Euro. However, the joint intervention of the Japanese, US and European banks restricted the Yen to further move ahead with it's value. The Yen however broadly strengthened on a more than two per cent gain in the Nikkei stock average. Also speculative selling of the Yen against Euro was observed as the Japanese investors were still looking to hedge their exposure.

RUPEE/JAPANESE YEN

This Week

Last Week

% Change

Last Year

% Change

.553 .535 3.3644 .5065 9.1806