Currency Market Report
Saturday, 19 April 2008 17:00
Weekly Updates -
Forex Weekly Report
The US dollar traded on historic note as it crossed Rs.64/00 for the first time versus the local currency in the last few years amid rising demand of the US dollar and increasing price of currency in the interbank market. As a result, rupee traded under severe pressure in the interbank and its impact was seen in the open market dealings too. The US dollar started off new week’s trading at Rs.63/80, continued to remain strong and was changing hands at Rs.64/40 at close of markets. Thus, rupee incurred a loss of 0/60 paisas versus dollar in the kerb market. In the international market, the dollar rose the most against the euro in more than two weeks after Citigroup Inc.'s first- quarter results fueled speculation that financial firms will weather credit market losses. The dollar rose 0.6 percent to $1.5809 per euro at 4:24 p.m. in New York, from $1.5908 yesterday. The U.S. currency increased 1.2 percent to 103.74 yen, from 102.48 yesterday. It touched 104.65 yen, the highest level since Feb. 29. The euro rose 0.6 percent to 164.01 yen, from 163.03 yesterday. It reached 164.68, the highest since Dec. 31.
Pound Sterling remained stronger versus rupee in the kerb dealings this week amid pound’s demand in the local market and intentional market’s performance were the main factors to remain record high. The cable kicked off new day’s trading at Rs.126/00, continued to post gains and was trading at Rs.128/40 at close of markets. Thus, rupee registered heavy losses of Rs.2/40 versus UK pound in the kerb market. On the international desks, the pound appreciated 1.3 percent this week to within a cent of $2 on speculation the Bank of England may take mortgages off lenders' balance sheets. Sterling was up 2.1 percent against the euro since April 16, when it touched the all-time low of 80.99 pence. It was the biggest two-day gain since September 2001.
The 15-nation currency continued to gain versus rupee in the open market amid Euro’s demand continued to remain high in the local market. However, euro lost grounds against dollar in the international market on Saturday. The single currency opened new day’s trading at Rs.100/80, recorded gains and changed hands at Rs.101/60 at close of markets. Thus, rupee ended the day on a negative note by incurring a loss of 0/80 paisas versus euro in the open market dealings. On the international desk, the euro briefly trimmed losses against the dollar after European Central Bank Governing Council member Klaus Liebscher said he saw no scope for a cut in interest rates in the euro zone.
Japanese Yen depreciated versus rupee in the kerb dealings this week. Yen set off new week’s trading at 0/62, shed mere grounds and was changing hands at 0/618 at close of markets on Saturday.
| Source: KKI Research Department |