Khanani & Kalia International (Pvt) Limited Weekly Market Review on Sunday (February 10, 2008).
The American currency kicked off trading at Rs 62/80,contined to gain and changed hands at Rs 62/85 at close of markets on Saturday. Thus, rupee lost 0/05 paisas versus dollar in the kerb dealings. in the international market, the dollar shipped on Friday light profit taking but was still on track for the biggest weekly rise since June 2006 as investors increasingly expect the U.S. growth slow down to drag on the economies.
The euro was off three cents in the week against the dollar and weakening more in coming days on growing expectation the European Central Bank will cut interest rates later this year depite stubborn inflation pressures. Moreover, the dollar was down 0.1 percent at 107.40 yen.
Thus, rupee gained Rs 1/70 versus the single currency. On the international desk, the euro posted its biggest weekly decline against the dollar since June 2006 on speculation a slowing economy will force the European Central Bank to join the Federal Reserve in reducing interest rates. Europe's currency fell this week for the first time in three weeks versus the Taiwan dollar.