KKI weekly market review

Khanani & Kalia International (Pvt) Limited Weekly Market Review on Sunday (September 23, 2007).
RUPEE/US DOLLAR: Rupee remained stronger against dollar in the kerb dealings this week amid decline in demand of dollar. The American currency commenced new week's trading at Rs 60/70 on Monday, gave up grounds and was changing hands at Rs 60/65 at close of markets on Saturday.
Thus, rupee recorded a gain of 0/05 paisas against dollar in the kerb. On the international desks, the US dollar recovered mildly, in particular against Canadian dollar and euro as both currencies are weighted down by disappointing data. Canadian retail sales came in much worse than expected, falling -0.8% mom, which is the second consecutive month of decline, Ex-auto sales also fail for the second month in a roll by -0.3 in Jul.
RUPEE/EUROThe local currency remained under tremendous pressure against the single currency in the open market dealings this week amid euro's better performance in the international market. The 13-nation currency started off new week's trading at Rs 83/90, continued to gain grounds and changed hands at Rs 85/20 at close of markets on Saturday. Thus, rupee lost Rs 1/30 versus euro in the kerb dealings. On the international desks, after hitting a new record high at 1.4120 versus the dollar, the euro edged lower versus the dollar on the weaker-than-expected manufacturing and services PMI reports form the euro zone.
RUPEE/POUND STERLINGThe cable remained in the positive territory versus rupee in the local market this week. Pound sterling opened new week's trading at Rs 122/15 at close of markets on Saturday. Therefore, the national currency lost Rs 1/40 against British Pound in the open market.