Khanani & Kalia International (Pvt) Limited weekly review of currency notes on Sunday (March 05, 2006).
RUPEES/US DOLLAR: A reverse trading trend was recorded between dollar and rupee this week and national currency was able to come up and show stability as compared to trading under tremendous pressure previously.
A steady performance of rupee was seen as mostly dollar traded within a price band of Rs 60/00 and Rs 60/03. New week dollar started with greenback changing hands at Rs 60/02 and at close, the price wen down to Rs 60/00 on Saturday. A firm trend of dollar in the inter bank dealings and downward in the international market helped rupee to erase pressure which it has sensed a week earlier.
Supply also wend better in the kerb which further supported the national currency. A 6-month high in the US services ISM may have stabilised the dollar from its losses earlier in the week, but did not prevent the currency from ending the week lower against the majors.
A hefty week in term of data release kept on chaning dollar's position on the currency desks. We saw dollar striking a fresh one-month low against yen after the release of weak U.S. economic data raised question marks about FRDs further interest rates tightening policy. The conference Board's consumer confidence index was worse than forecast, down to 101.7 for February compared with an upwardly revised 106.8 reading in January.
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