KKI weekly market review

Khanani & Kalia International (Pvt) Limited Weekly Market Review on Sunday (June 17, 2007).
RUPEE/US DOLLAR: The national currency continued to show a mixed trend against the US dollar in the open market this week. However, rupee shed 0/02 paisas versus greenback at close of markets on Saturday. The American dollar commenced new day's trading at Rs.60/95 on Monday, shed grounds and went at Rs.60/90 on Friday.
However, the US dollar made a strong comeback by changing hands at Rs.60/97 on Saturday. Thus, rupee incurred a loss of 0/02 paisas against greenback in the kerb market On the international desk, the dollar shed the most against the euro in two months on reports showing a measure of consumer inflation rose less than economists forecast and industrial production stalled last month.
RUPEE/EUROEuro remained the gainer against the local currency in the open market dealings. However, euro saw some dips in its value against rupee in the middle. The single currency started off new week's trading at Rs.81/20 and on Saturday was trading at Rs.81/30 at close of markets. Thus, rupee shed 0/10 paisas against the 13-nation currency in the kerb. On the international desks, the euro rebounded against the dollar as traders almost finished adjusting positions according to recent changes in expectations for the Fed rate outlook. The euro broke a technical obstacle at 1.3340, and initiated an upward trend to reverse rent loss. Moreover, the euro gained after the ECB council member Axel Weber said the bank is ready to contain inflation, signaling further rate increase. Futures market indicated traders priced in at least one more rate hike by the ECB within the year.
RUPEE/POUND STERLINGPound sterling observed both trends the upward and downward against rupee in the kerb market. The cable set off new week's at Rs.119/70 and was trading at Rs.120/30 at close of markets on Saturday. Thus, rupee showed overall loss of 0/60 paisas versus Birtish Pound.