KKI weekly market review

Khanani & Kalia International (Pvt) Limited Weekly Market Review on Sunday (June 15, 2008).
RUPEE/US DOLLAR: The US currency shed grounds versus rupee amid dollar's demand declined in the local market this week however dollar remained strong in the local market this week however dollar remained strong in the international market.
Upward trend was witnessed on open market as the rupee gained 50 paisas against dollar for buying at 67/60 at close of markets on Saturday. Rising expectation about the improvement in the inflows helped the rupee to recover further grounds versus dollar since 2005 as federal Reserve Chairman Ben S.Bernanke said economic risks have faded, raising speculation policy makers will increase borrowing costs this year to contain inflation.
In addition, in an interview Michael Metcalfe, London-based of macro strategy at State Street Global Markets said "If the G-8 this weekend doesn't come out with a stronger statement, the gains we have seen in the dollar this week will disappear very soon"
RUPEE/EURO The 15-nation currency gave up major grounds versus rupee in the kerb dealings amid euro's demand in the local market coupled with losses against dollar in the international market. The single currency commenced new week's trading at Rs.106/30, shed significant grounds and was changing hands at Rs.103/80 at close of markets on Saturday.
Thus, rupee posted a gain of Rs.2/50 versus Euro in the kerb . in the euro zone, the 15-nation euro weakened as Irish voters turned down the European Union's new governing treaty, a setback for the bloc's plans to strengthen its global voice. Moreover, the last time the major industrialised countries intervened was on September 22.2000, when they bought the euro after it tumbled 27 percent from its 1999 debut.