Saturday, 26 July 2008 17:00
A mix trend was witnessed in the kerb market as rupee recovered 0/20 paisas versus US dollar amid decline in demand of the US currency this week. The US dollar kicked off new week’s trading at Rs.71/50, continued to show appreciation and was trading at Rs.71/80 on Thursday amid demand was significantly high. However, rupee made a strong comeback on Friday by posting a recovery of Rs.1/00 and traded at Rs.70/80 at close of markets. Thereafter, rupee weakened and was trading at Rs.71/30 at close of markets on Saturday. On the international desk, the U.S. dollar rose against the Japanese yen on Friday, after a trio of better-than-expected data injected a dose of optimism about the U.S. economy. The upbeat readings on U.S. durable goods orders, new-home sales, and a rebound in consumer sentiment from a 28-year low allayed some of the recent gloom over the economy and financial markets, sending stocks higher and giving a boost to the beleaguered U.S. currency.
Rupee made recovery versus the cable in the kerb this week amid pound’s decline in the international market and demand remained low in the local market. The British Pound started off new week’s trading at Rs.142/50, shed grounds and was trading at Rs.142/30 at close of markets on Saturday. On the international desks, the sterling continued to slide despite UK GDP largely inline with expectations, with cable falling to 1.9828. The UK economy expanded by 0.2% in Q2 versus 0.3% in the previous quarter and 1.6% compared with 2.3% a year earlier. Although the reports were as expected, it continues to reflect deteriorating economic conditions in the UK, with pressure growing on the BoE to cut rates to stimulate the struggling economy.
The 15-nation currency incurred losses versus the local currency as demand of Euro remained down in the kerb market. The single currency opened new week’s trading at Rs.113/40, shed grounds and was changing hands at Rs.112/30 at close of markets on Saturday. Thus, rupee recovered Rs.1/10 versus euro in the kerb dealings.
|Source: KKI Research Department|
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