Forex Research -
Open Market Comments
The rupee was able to maintain its firm tone against the US dollar and showed no change in the exchange price here in the kerb dealings today as well. The national currency therefore was able to close week on a positive note. Trading turnover was slow which is usual for Saturday’s while sufficient supply covered the existing demand with ease without putting any pressure on rupee. Trading price which started off at Rs. 83/70 remained same at close too. On the other hand, euro and pound sterling showed an increasing trend as both currencies were trading higher on international desks.
As we have been mentioning the fact in our earlier reports that improving performance of stock exchange has attracted investors as the benchmark KSE-100 Index closed the week at 10,586.22 points with a gain of 52.65 points, while the free-float KSE-30 Index gained 40.54 points to close at 10,848.46. This is one of the major supporting factor for rupee as thin trading activity in the currency markets and increasing demand of rupee is mainly because of the same reason. According to the dealers, rupee is getting lot of support in the market as customers are more willing to sell than to buy these days. The business turnover which currently is already on the lower side has gone further down due to improving performance of the stock markets.
Asia Pacific markets were stronger across board with the Hang Seng index leading the pack- gaining more than 1.5%. ECB President Jean-Claude Trichet attempted to calm troubled markets today, stating that there was no immediate risk of a Greek default. The euro rallied on the remarks, lifting the single currency to session highs above the 1.34 handle, early in London trade. Euro traders seemed to have found some comfort in Trichet's comments, keeping euro bears ashore. The single currency continued its advance after testing the S1 monthly pivot at 1.3280 earlier in the week.
Source: Kalpoint Content Department