KKI weekly market review

Khanani & Kalia International (Pvt) Limited Weekly Market Review on Sunday (November 04, 2007).
RUPEE/US DOLLAR: Rupee shed mere grounds against greenback in the local market this week. However, dollar continued to lose against the euro and decline against most major currencies on concern deepening credit-market losses will prompt the Federal Reserves to reduce interest rates again this year. The American dollar started off new week's trading at Rs 60/70 on Monday, posted mere gains and was changing hands at Rs 60/72 at close of markets on Saturday. Thus, the national currency incurred a loss of 0/02 paisas versus dollar in the open market.
RUPEE/EUROThe 13-nation currency continued to register gains against the local currency amid surge in demand of euro in the local market and its better performance in the international market against dollar. The single currency commenced new week's trading at Rs 87/25, posted gains and changed hands at Rs 87/80 at close of markets on Saturday. Thus, rupee recorded a loss of 0/55 paisas versus euro in the open market. On the international desks, the euro hold onto its gains above the 1.45-level slightly beneath its all-time high against the dollar at 1.453. Traders would look ahead to next week's ECB monetary policy meeting, in which change was change was expected.
RUPEE/POUND STERLINGThe cable continued to show upward trend against the national currency in the kerb market. The British currency opened new week's trading at Rs 124/80 on Monday, traded on upbeat note and stood at Rs 126/35 at close of markets on Saturday. Thus, Pound Sterling gained Rs 1/55 against rupee in the local market. In the international market, the British pound rose to a 26-year high against the dollar in early London trading. It reached $2.0875 the strongest since May 18, 1981. Against the euro, the pound slipped to 69.50 pence, from 69.34 pence.