KKI weekly market review

Khanani & Kalia International (Pvt) Limited Weekly Market Review on Sunday (September 14, 2008).
RUPEE/US DOLLAR: Rupee continued to incur losses against the US dollar in the kerb market amid demand of US currency continued to rise. The greenback commenced new week's trading at Rs.76/l 0, posted gains on the local desk and was changing hands at Rs.76/50 at 11:01 AM local time on Saturday. Thus, the national currency shed 0/40 paisas versus dollar the kerb dealings.
In the international market, the dollar fell the most against the euro since January 2006, pushing it down from a one-year high, on reduced demand for the greenback as a haven. The euro the Brazilian real and the pound advanced versus the yen as Lehman Brothers Holdings Inc negotiated with potential buyers, encouraging investors to reduce bets against higher-yielding assets. The dollar also declined versus the euro as traders increased speculation that the Federal Reserve will cut borrowing costs by the end of the year. The dollar fell 1.6 percent to $l.4222 at 4:19 PM in New York from $1.3998 yesterday, when it touched $1.3882, the strongest since September 18, 2007. The yen dropped 2.3 percent to 153.40 per euro, from 149.98 yesterday, when it reached 147.54, the strongest since August 11. 2006. Japan's currency decreased 0.7 percent to 107.88 per dollar, from 107.17.
RUPEE/EURODemand of the single currency was high as rupee lost Rs.1/00 on the local desk. Euro opened new week's trading at Rs.107/50, recorded gains and was changing hands Rs.108/50 at 11:01 AM local time on Saturday. Thus, rupee ended current week on a negative note versus the 15-nation currency.
RUPEE/POUND STERLINGThe cable posted gains against the local currency in the kerb market this week. The British Pound started off new week's trading at Rs.1 33/60, recovered significant grounds and was trading at Rs.136/80 at 11:01 AM local time on Saturday. Thus, rupee lost Rs.3/20 versus Pound Sterling.