Rupee continues to trade in the positive territory

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Forex Research - Open Market Comments

Market showed a stable trend and no major change in the price of greenback was recorded in the kerb. Although it was Friday and demand was slightly higher but available supply in the market helped the dealers to cover it up without pushing rupee down to any major extent. The exchange price floated within a controllable range as the dollar was trading at Rs. 84/20 for buying and Rs. 84/70 for selling.There was some pressure in the interbank market as well but normal price changes took place for settling the demand transactions.We expect to see downward trend in the price of dollar in the days to come especially after the Chairman Parliamentary Committee on Constitutional Reforms Senator Mian Raza Rabbani today presented the landmark document in country's history to the Parliament, describing it "a bill of hopes, fundamental rights and experiences." This indeed can become a major attraction for investors in the stock markets in the coming days and we may see more demand of rupee as compared to other foreign currencies. This may lead to an increase in selling pressure which will ultimately help rupee to show more gains in the first few sessions of the coming week. Upcoming related events would further set a tone for the political future of the country which would have a significant impact on the national economy as well. However as expected, an increase in the price of euro and pound sterling was seen in local dealings amid their rise against dollar on the international desks. Here in the local dealings, euro was changing hands at Rs.112.62/- for buying and Rs. 114.95/- for selling as US markets traded lower on a worse than expected ADP employment report that showed a loss of some 20k jobs in the private sector vs. an expected gain of 40k. The strong inverse correlation between the dollar and US equities has all but faded as yesterday's price action clearly illustrated.Pound sterling also traded on a higher note against the Pak rupee as the exchange price remained Rs. 126.57 for buying and Rs. 128.72 for selling respectively. The pound's rally continued today after four consecutive days, breaking through the 1.52 handle early in Tokyo trading as recent data from the UK suggest the recovery is strengthening.Both euro and pound sterling are looking all set to show more gains against rupee since upside potential for euro builds with a breach of 1.3550, with subsequent ceilings seen at the 1.36 handle, and 1.3650 while after having tested the 1.5240 resistance level, the sterling has managed to hold its gains above the figure. Further up, resistance is seen at 1.5250, backed by 1.5280 and the 1.53 figure.



Source : Kalpoint Content Department



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