KKI weekly market review

Khanani & Kalia International (Pvt) Limited Weekly Market Review on Sunday (June 29, 2008).
RUPEE/US DOLLAR: Currency market witnessed the rising trend off the US currency versus rupee amid its increasing demand in the local market this week. The American currency set off new week's trading at Rs 68/40 at close of markets on Saturday.
Thus, rupee incurred a loss of 0/20 paisas versus dollar in the kerb dealing. In the international market, the US dollar weakened to a two-week low versus Japanese yen and moreover, yen advance versus the euro as a stump in stock markets around the world reduced demand for higher-yielding assets funded by loans in Japan.
RUPEE/EUROEuro continued to post gains versus rupee in the kerb dealings. However euro remained loser versus yen in the international market. The 15-nation currency kicked off new week's trading at Rs 105/50, continued to rise and changed hands at Rs 106/90 at close of markets on Saturday. Thus, rupee gave up Rs 1/40 versus Euro in the kerb.
On the international desk, the euro depreciated against the yen as Ordonez, who is also governor of the Bank of Spain, told reporters in Rome today that an increase in the ECB' s 4 percent main refinancing rate on July 3 "is not certain, but possible." ECB President Jean-Claude Trichet said in early June that policy markers may raise rates by a small amount.
RUPEE/POUND STERLINGThe cable continues to appreciate against rupee on the local desk. Pound sterling commenced new week's trading at Rs 133/50, continued to pocket gains and was trading at Rs 134/90 at close of market on Saturday. Thus, rupee shed Rs 1/40 versus the British pound in the kerb market.