Last Updated on Tuesday, 30 November 1999 05:00 Monday, 06 July 2009 16:53
As the new week begins the National Currency is remained motionless against the Greenback. The American dollar commenced new day’s trading at Rs.81/50, and was unchanged at close of markets on Monday. In the International Market The pound fell against the dollar, capping its first weekly decline in a month, after a report showed the U.K. services industry grew at a slower pace in June. The pound also dropped against the euro in the five days as the economy contracted more than forecast in the first quarter, denting optimism that has helped propel the pound 12 percent higher against the U.S. currency this year. Bank of England policy maker David Miles said yesterday that the U.K. banking industry “remains on life support.” “The data is not strong enough to generate a more bullish outlook” for sterling, said Henrik Gullberg, a foreign-exchange strategist in London at Deutsche Bank AG, the world’s largest currency trader. “You could argue that there is a downside risk in pound-dollar because it’s overstretched.”
The pound fell 0.4 percent to $1.6333 as of 4:50 p.m. in London, contributing to a 1.2 percent decline in the week. It depreciated 0.3 percent to 85.62 pence per euro, giving it a drop of 0.7 percent this week. It also fell 0.4 percent this week to 156.72 yen. An index based on a survey of about 700 service companies by the Chartered Institute of Purchasing and Supply fell to 51.6, from 51.7 in May. The median forecast of 29 economists surveyed by Bloomberg was for a reading of 51.5. A reading above 50 indicates an expansion. The British economy contracted 2.4 percent in the first quarter, the most since 1958, the Office for National Statistics in London said June 30. Gross domestic product in the U.K. will shrink 4.3 percent this year, the Organization for Economic Cooperation and Development said last week, revising a March forecast for a 3.7 percent contraction.
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