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Rupee starts week on a promising note

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Forex Research - Open Market Comments

The rupee stood motionless at the start of fresh week here in the open market today as no change in the exchange price of dollar was recorded. It was the fourth consecutive day when no change in dollar’s price was seen as trading continued to take place at Rs. 83/70 for buying and Rs. 84/20 for selling. According to the market sources, demand remained below normal while supply was fair enough to meet the existing one.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 factors 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.We are expecting the current trend to continue in the coming sessions as well and rupee would further strengthen its standing on the desks. On the basis of demand constantly going down and major business shift to the stock markets, we may see rupee showing more gains in the current week. Further a breeze of political consensus on the back of unanimous approval of the 18th amendment by the National Assembly has no doubt injected a fresh wave of optimism and have helped to revive investors confidence in the present democratic set-up of the country which will take the stock markets a further step ahead in the coming sessions. This would further reduce demand in the currency markets and hence rupee would continue trading in the positive zone here in the kerb.On the international desks in weekend trading euro rallied on the remarks of Trichet’s that there was no immediate risk of a Greek default 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


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Forex Rates of Pakistan and charts are available from 1992 onwards