KKI weekly market review

Khanani & Kalia International (Pvt) Limited Weekly Market Review on Sunday (August 19, 2007).
RUPEE/US DOLLAR: Rupee showed a sign of recovery versus the American dollar in the kerb this week. The American dollar commenced new week's trading at Rs 60/80, lost 0/05 paisas and changed hands at Rs 60/75 at close of markets on Saturday.
Thus, the local currency recorded a gain of 0/05 paisas versus dollar in the open market dealings. On the international desk, the dollar fell versus the euro for the first time this week after the Federal Reserves cut its discount lending rate to prevent credit market losses from slowing the economy. The dollar weakened against 14 of 16 major currencies as a reduction in borrowing costs dims the allure of U.S. assets. The decline today trimmed the dollar's weekly advance as investors had sought safely in the currency after a global rout of credit markets. U.S. and European stocks rallied.
RUPEE/EUROEuro remained in the negative territory versus rupee in the open market this week. The single currency opened new week's trading at Rs 82/60, registered significant losses and was changing hands at Rs 81/65 at close of markets on Saturday. Thus, the local currency recorded a gain of 0/95 paisas against euro in the open markets dealings.
RUPEE/POUND STERLINGThe cable continued to lose against rupee in the kerb dealings. Pound Sterling kicked off new week's trading at Rs 122/00, continued to shed grounds and changed hands at Rs 120/15 at close of markets on Saturday. Thus, rupee gained Rs 1/85 versus British Pound in the open market.