KKI weekly market review

Khanani & Kalia International (Pvt) Limited weekly market review of currency notes on Sunday (January 01, 2006).

RUPEE/US/DOLLAR: The dollar recorded a downward trend here in the open market dealings this week and ended at a lesser price than last Saturday. New week started at Rs 59/95 which went down to Rs 59/87 at close. At one stage, dollar was changing hands at Rs 59/85 but showed slight recovery towards the weekend. Demand was fairly normal here in the market this week whereas supply was sufficient to cover up the requirements. On the other hand, dollar was firm in the inter bank too which further supported rupee here in the Kerb. On the international desks, dollar looked set on Friday to end 2005 almost 15 percent higher against the euro and the yen and at its best annual gain in eight years versus an index of currencies, boosted by the Fed's ongoing rate-raising campaign. The dollar has risen 12.4 percent this year against an index of major currencies , rebounding after a three year, 30 percent decline driven by worries about the United States' ability to finance its growing trade deficit. The dollar has had a shot in the arm from a steady of U.S. interest rate rises. The Federal Reserve is expected to raise rates for a 14th straight meeting in January, taking its key rate to 4.5 percent, and more rises are seen possible.
Copyright Business Recorder, 2006