Saturday, 24 May 2008 17:00
Decline in dollar’s demand helped rupee make some recovery on the local desks this week. The American currency started off new week’s trading at Rs.69/30 on Monday, shed grounds and was trading at Rs.69/00 at close of markets on Saturday. Thus, the local currency recovered 0/30 paisas versus dollar. In the international market, the dollar posted its third consecutive weekly decline against the euro as the U.S. housing slump and record oil prices slow growth in the world's biggest economy. The currency also dropped versus the yen and traded near the weakest level in a month versus the Swiss franc after an industry report showed U.S. home sales fell in April. The Chinese yuan had its biggest weekly increase this year on signs the country's officials are accelerating the currency's gains to curb rising prices.
Pound Sterling continued to soar against rupee in the kerb market. The cable set off new day’s trading at Rs.133/75, posted gains amid rise in its demand and was changing hands at Rs.136/75 at close of markets on Saturday. Thus, rupee lost Rs.3/00 versus the British pound. On the international desks, the sterling crept higher against the dollar, pushing toward 1.9850. The 2nd release of UK Q1 GDP was unrevised at 0.4% q/q and 2.5% y/y.
Demand of the single currency continued to soar in the open market as local currency shed shine by losing Rs.2/40 this week. Euro kicked off new week’s trading at Rs.106/40, continued to rise and was changing hands at Rs.108/80 at close of markets. Thus, rupee ended the week on a negative note versus the 15-nation currency.
The Japanese currency posted gains against rupee in the kerb market amid its better performance in the international market and higher demand in the local market. Japanese currency started off new week’s trading at 0/653 and was changing hands at 0/665 at close of markets on Saturday. In the international market, the yen advanced toward the 103-handle against the dollar amid sustained pressure in the price of oil and declines in equities.
|Source: KKI Research Department|
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