Weekly Updates -
Forex Weekly Report
The US dollar crossed Rs.65/00 mark for the first time versus rupee in the kerb dealings amid rise in dollar’s demand and its better performance versus Euro in the international market. The American currency kicked off new week’s trading at Rs.64/60, posted major gains and was changing hands at Rs.65/20 at close of markets on Saturday. Thus, rupee lost 0/60 paisas versus dollar in the kerb dealings this week. In the international market, the dollar posted the biggest three-day advance against the euro since June 2005 as traders increased bets the Federal Reserve will stop cutting interest rates and the European economy showed signs of a slowdown. The euro touched a three-week low against the dollar after a European Central Bank report said money supply growth slowed last month more than economists forecast. The Australian and New Zealand dollars dropped against all of the major currencies as lower commodity prices dimmed the outlook for growth.
The cable continued to rise versus rupee in the open market. Pound Sterling started off new day’s trading at Rs.127/80, appreciated further and was trading at Rs.129/75 at close of markets on market. Thus, the national currency lost Rs.1/95 versus the British currency.
Euro showed a mix trend versus rupee in the open market. However, the single currency lost 0/50 paisas at close of markets. The 15-nation currency commenced new day’s trading at Rs.102/60, incurred losses and changed hands at Rs.102/10 at close of markets. Thus, rupee recovered 0/50 paisas versus euro in the open market dealings.
Japanese Yen showed a mix trend versus rupee in the kerb dealings this week. However, Japanese currency remained unchanged on Saturday. Yen commenced new week’s trading at 0/622 and ended current week at the same price.
| Source: KKI Research Department |