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FOREX KERB WATCH

Comments by OWAIS S. KALIA (Khanani & Kalia)
Updated on  Mar 17, 2001

Comments: In the local market, the Rupee made a little recovery against the Green in the trading sessions this week. The Rupee that had to encounter a very tough competition against the Dollar in the last week's trading, managed to hold itself firm against the currency since the start of the current week. The Dollar although showed gains over the Rupee as well, but the market moved in such a direction that it also gave chances to the Rupee for getting firm footing and to recover whenever possible. The trading pressure in the market showed a normal trend and the hectic type of a situation that was mostly prevailing in the market for the last couple of days got under some degree of control of the national currency.

RUPEE/US DOLLAR

This Week

Last Week

% Change

Last Year

% Change

63.196

62.9

.4689

54.165

16.673

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Comments: In the domestic market, the Rupee showed a mix trend against the Pound this week. In the domestic market, the Rupee lost against the Sterling on the first three days of trading as the market overall remained tough for the currency to trade in. The national currency thus ended the week showing a positive note against the British Pound and this position is likely to prolong further as the Pound in the international market is showing a mix trend and also the supply of the currency in the market is quite normal to support the trading of the currency here in the kerb.

RUPEE/POUND STERLING

This Week

Last Week

% Change

Last Year

% Change

91 92.3 -1.408 85.9 5.937
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Comments: In the local market, the German Mark showed a downtrend against the Rupee this week as the currency remained under pressure in the international market and thus traded under the pressurized move in the kerb too. The trading moves were not very disappointing for both the currencies. In the world market, the Euro posted its biggest drop in 10 weeks against the Dollar, as accelerating French and German inflation raised concern the European Central Bank won't cut interest rates soon enough to spur economic growth. The Euro fell heavily as the overly long market unwound some of its optimism about the state of the European economies.

RUPEE/DEUTSCHE MARK

This Week

Last Week

% Change

Last Year

% Change

29.125 30.1 -3.239 28.375 2.643
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Comments: In the kerb, the Yen remained flimsy against the Rupee and lost further values against it till late Saturday. In the international market, a mix trend of ups and downs was observed as the Dollar for most of the time kept the currency under pressure in the trading desks. The Yen hovered at a 20-month low against the Dollar on concern plunging stock prices could further crimp the ability of banks to lend, sending the economy back into recession. However, the Yen also gained against the Green as it demonstrated its largest gain against the Dollar in more than two weeks on the speculation that tumbling Japanese stocks will pressure companies to repatriate more income from overseas operations and investments in Tuesday's trading sessions.

RUPEE/JAPANESE YEN

This Week

Last Week

% Change

Last Year

% Change

.5135 .5275 -2.654 .51 .686