KKI weekly market review

Khanani & Kalia International (Pvt) Limited Weekly Market Review on Sunday (March 02, 2008).
RUPEE/US DOLLAR: The dollar showed mix trend versus the national currency in the kerb this week.
However, dollar posted a gain of 0/10 paisas rupee at close of market. The American dollar commenced new week's trading at Rs 62/50 and was changing hands at Rs 62/60 at close of market on Saturday. On the international desk, the dollar fell to a three-week low against the euro on speculation the Federal Reserve will cut borrowing cost to avert a recession while European policy makers keep rates on hold.
The U.S. currency declined against 15 of its 16 most-active counterparts and fell to within a cent of a record low versus the euro as trader bet the Fed will lower rates a half -point next month. The dollar fell to the lowest level in the three years versus the yen and touched the weakest ever against the euro after the Federal Reserve signaled the currency's decline may be helping the U.S. economy.
RUPEE/EUROEuro remained the best performer versus the national currency in the kerb dealings this week. The single currency commenced trading at Rs 92/55, posted hefty gains amid rise in its demand and better performance in the international market and was changing hands at Rs 94/80 at close of markets. Thus, rupee lost Rs 2/25 versus euro on the local desk. On the national desk, the euro's advance to a record against the dollar may stall, according to a technical indicator some traders use to predict currency movements.
RUPEE/POUND STERLINGPound Sterling secured significant grounds versus rupee in the open market. The cable started off new week's trading at R.s124/20 went up due to its demand and changed hands at Rs 124/20 at close of market on Saturday. Thus, rupee shed Rs 1/30 versus the British Pound.