Easy supply of greenback continues to support market sentiments


Forex Research - Open Market Comments

The dollar continued to trade on a firm note as no change in the exchange price was recorded in the kerb dealings. The trading continued to take place at the overnight exchange price of Rs. 83/90 for buying and Rs. 84/10 for selling. The interbank price of dollar also remained within a controllable range which avoided bringing any pressure on rupee despite of being Friday. Further sufficient supply of greenback with the vendors continued to give firm support to rupee and with no major demand coming in these days, the market was showing a steady trend on a constant basis.However euro continued to lose ground against national currency on account of its downward performance on the international desks. The single currency initially received fell after an announcement about a bridge loan from European countries before Greek activating EU/IMF aid mechanism, and dropped further after an upward revision on 2009 budget deficit.  The single currency was subjected to heightened volatility in the New York session, whipsawing around the 1.33-level on contrasting reports which shed more light on the developments with the Greece deficit crisis.According to the weekly report on foreign exchange reserves released by the State Bank, country’ s foreign exchange reserves stood at $15.05 billion during the week ended on April 17, showing no change in the reserves position as compared with the previous week. The reserves held by the State Bank of Pakistan, however, marginally reduced to $11.1 billion from $11.15 billion during the last week ended on April 10.



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