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FOREX KERB WATCH

Comments by OWAIS S. KALIA (Khanani & Kalia)
Updated on  Oct 02, 2000

Comments: In the domestic market, the Rupee lost further grounds against the greenback as the demand in the market persisted. However, as compared to hectic movement observed last week, the market remained unruffled to some extent. Meanwhile, the lack of positive development signs in the economy is posing a serious question mark for the country. The experts are showing deep concerns that the intervention in the forex market is a temporary move as exporters outlook is still unchanged and the trade deficit is widening. The fast depreciation of the Rupee is also confederated with the lack of the expected receipt of loans from the international sources.

RUPEE/US DOLLAR

This Week

Last Week

% Change

Last Year

% Change

61.1

60.125

1.621

54.375

12.367

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Comments: In the domestic market, the Rupee gained Rs. 2.60 at the close of the markets. The last week's upward trend continued in the market and the investors took interest in buying with a view of earning some substantial margins amid to the increasing international value of the Pound. In the international market, the Pound rallied to one-week highs against the Dollar at one stage during the current week. However it showed a mix trend against the Euro.

RUPEE/POUND STERLING

This Week

Last Week

% Change

Last Year

% Change

89.8 87.2 2.981 89.9 -.111
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Comments: In the domestic market, the Rupee gained 0.65 Paisa against the Mark at the end of the market. Trading volume of the currency has considerably increased following the rising trend in it's value in the international market.

At the international level, the firmness of Euro after the intervention by the central banks as a supportive move also helped the Mark to gain some grounds. It is expected that the Mark may gain more as positive signs of more improvements are emerging.

RUPEE/DEUTSCHE MARK

This Week

Last Week

% Change

Last Year

% Change

27.575 26.95 2.319 29.8 -7.466
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Comments: In the international market, the Yen went down due to the unexpected intervention by Group 7 to support Euro. The Euro gained highs against Yen and the Japanese investors kept themselves high alert for further Euro buying. The Japanese experts analyzed the situation by saying that the authorities are watching the market carefully and any necessary action would be taken when required. Also the Dollar moved in tight ranges against Yen and both the currencies showed no major changes in their values.

RUPEE/JAPANESE YEN

This Week

Last Week

% Change

Last Year

% Change

.561 .553 1.446 .515 8.932