Saturday, 16 August 2008 17:00
Bearish trend continued to remain in the open market as the national currency gave up Rs.2/30 due to political turmoil and rising demand of US dollar. Moreover, dollar’s international market performance continued to improve. The American dollar started off new week’s trading at Rs.74/20, posted record gains and was trading at Rs.76/50 at 1:06pm local time on Saturday. Thus, rupee ended current week on a negative note versus dollar. On the international desks, the dollar posted a fifth weekly gain against the euro, its longest winning streak in more than two years, as crude oil prices declined and the European and Japanese economies contracted. The U.S. currency rose to the strongest level in almost six months against the euro and a seven-month high versus the yen.
The cable advanced significantly versus the local currency in the kerb market this week. However, British currency remained loser in the international market. The Pound started off new week’s trading at Rs.141/20, posted recovery and was trading at Rs.142/00 at close of markets on Saturday. Thus, rupee recorded a loss of 0/80 paisas versus Pound Sterling. In the international market, the pound dropped for an 11th day against the dollar, the longest run of declines in at least 37 years, on speculation a recession will force the Bank of England to cut interest rates.
Appreciation was witnessed in the price of Euro against rupee in the kerb market this week. The single currency kicked off new week’s trading at Rs.110/20, recovered major grounds and was trading at Rs.112/00 at close of markets. Thus, rupee incurred a loss of Rs.1/80 versus Europe’s shared currency.
Source: KKI Research Department
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