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FOREX KERB WATCH

Comments by OWAIS S. KALIA (Khanani & Kalia)
Updated on  Nov 20, 2000

Comments: In the local market, the Rupee espied a mix trend of rise and fall against the Dollar this week. The removal of the cash margin restriction from the LC's by the State Bank of Pakistan created a steep decline in the value of the Rupee versus Dollar on the first four days of the week. However, on Friday, the Rupee managed to float back and recovered positively against the green and remained firm till the close of the markets mainly due to substantial supply of greenback in the market. The experts are expressing their positive opinion regarding the increase in GDP that the Rupee is expected to gain some further grounds with due passage of time.

RUPEE/US DOLLAR

This Week

Last Week

% Change

Last Year

% Change

60.955

61.175

-.359

54.225

12.411

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Comments: In the domestic market, the Rupee lost 0.80 Paisa against Pound at the end of the week. Normal trading of the currency was observed showing more selling trend from the customers mainly, the investors remained sidelines and overall the movement remained normal. In the international market, the Pound declined against the Dollar but remained firm against the Euro. The quarterly report released by the Bank of England showed an expected 2.5% inflation rate which according to the dealers, they had largely anticipated a more relaxed stance on inflation by the Bank of England.

RUPEE/POUND STERLING

This Week

Last Week

% Change

Last Year

% Change

87.1 87.6 -.5707 87.9 -.9101
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Comments: In the international market, the Rupee lost 0.50 Paisa against the Mark. In the international market, the Mark remained steady against the Dollar as the Euro showed no change after the European Banks left interest rates unchanged. However, the data showing a record high in German wholesale price inflation by 7.4% is expected to bear some positive impact on the Mark in the coming days.

RUPEE/DEUTSCHE MARK

This Week

Last Week

% Change

Last Year

% Change

26.6 27.075 -1.754 28.7 -7.317
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Comments: In the international market, the Yen showed it's gains over the Euro and remained steady against the Dollar and Pound. The Japanese Finance Minister Mr. Kiichi Miyazawa had warned that a vacuum in the Japanese economy at this critical stage of economic recovery may prove dangerous for the economy. Also, the Japanese experts said that long-term benefits may be acquired if the unpopular Prime Minister Yoshiro Mori might be replaced by a more reformist leader.

RUPEE/JAPANESE YEN

This Week

Last Week

% Change

Last Year

% Change

.558 .566 -1.413 .509 9.626