Mexican Peso Advances as Rates Won’t Be Cut

The Mexican peso had a positive performance today versus the greenback as interest rates are unlikely to have further cuts, attracting investors to inject capital in the North American country.

The peso benefited today from a rally in crude oil rates,that crossed the $80 line per barrel in New York, raising appeal for the Mexican currency since the country is one of the main fossil energy suppliers for the United States.

USD/MXN traded at 12.98 as of 17.37 GMT from an opening rate of 13.03 today...link

Gold, Oil Force Canadian Dollar Up

The Canadian dollar continued to trade high maintaining yesterday’s gains versus the U.S. dollar as gold reached a record high, raising attractiveness for Canadian commodities.

The loonie, as the Canadian dollar is often referred to, continued to trade near a four week high versus its U.S. counterpart as the oil, one of the main Canadian exports to the U.S. climbed beyond $80 a barrel, in a day that U.S. posted weak construction industry data.

USD/CAD traded at 1.0526 as of 17:28 GMT from yesterday’s rate of 1.0595...link

Dollar Down on Interest Rates Speculations

The dollar fell today versus several higher-yielding currencies after speculations from Fed key-members suggested that interest rates in the country may remain at a record low for an extended period, declining attractiveness for the U.S. currency since investors can opt for higher returns in assets overseas.
After Federal Reserve Bank of St. Louis President James Bullard affirmed that interest rates in the United States may not start to be hiked until the beginning of 2012, foreign-exchange markets reacted instantly to such declaration pushing the dollar rates down versus the euro, paring previous gains for the greenback and also losing versus its Canadian counterpart, with a better rates hikes prospect for 2010. The Chilean currency extended its record high even further versus the greenback, in an extremely long winning streak that the peso to the highest price in almost 16 months.
Most of analysts remain rather unmotivated regarding the future of the U.S. dollar, as public debt remains high in the country and several other reasons are likely to slow down the recovery in the country compared to other wealthy nations, adding to the pessimism brought today by Bullard’s statements. The dollar is likely to remain under pressure, for an undetermined amount of time.
EUR/USD traded at 1.4943 as of 15:11 GMT from a previous rate of 1.4826 yesterday. USD/JPY remained in neutrality trading at 89.19...link

Pound Down on Policy Makers Disagreement

The British currency went down today versus the euro and the dollar as a statement regarding a policy makers meeting yesterday indicated divergent opinions concerning the asset-purchase program, declining attractiveness for the pound as the central bank has not found a point of consensus towards the future of the U.K.’s monetary policy.
After several days gaining versus major currencies, the pound’s rally was halted today after Bank of England’s meeting minutes discussions were published, showing that despite the fact the majority of policy makers voted for a 25 billion pound boost for the current BOE’s asset-purchase program, one policy maker suggested a further expansion and another opted for no changes in the current program’s budget, evidencing a split inside Britain’s monetary decision makers, which decreased confidence towards the future of the country’s economy, setting the pound down versus the euro and several other major currencies in foreign-exchange markets this Wednesday.
As the economy in the British Isles start to improve, it is likely that the current quantitative measures being used by the Bank of England to stimulate the economy will be phased out gradually, but the lack of consensus regarding policy makers is unwelcome for the pound’s outlook, as traders could then opt for countries with a more solid monetary policy, purchasing assets in Australia for example.
GBP/USD traded at 1.6808 as of 14:25 GMT from a previous rate of 1.6853 in the intraday. EUR/GBP traded at 0.8902 from 0.8845...link

Swedish Krona Posts Biggest Fall in 2 Weeks

After the IMF statements regarding a slower than expected global economic recovery, the Swedish krona posted an intense decline versus the U.S. dollar, as traders opted for safety in a rather turbulent trading session.
Several worse than expected U.S. economic reports were published today, declining attractiveness for currencies like the Swedish krona, as the country is relying on a faster economic recovery to save its banking system, which is highly attached to countries facing strong recession, like the Baltic nations of Lithuania and Latvia, forcing the krona down versus the euro and the greenback.
EUR/SEK closed at 10.23 today from a previous close of 10.18 yesterday...link

Chilean Peso Remains Bullish on Central Bank Statement

The Chilean currency managed once again to break a record this Tuesday after the nation’s central bank confirmed that it will remain the interest rates in the country at a record low for the next semester, improving demand for peso-priced assets.
The peso has been having a more than great week as virtually all domestic and international events favored the Chilean currency. Apart from the national central bank statement regarding low interest rates, the copper rates, extremely influential to the peso price, are climbing significantly, setting the peso to the highest level versus the U.S. dollar since July 2008...link

Pound Hits Record High on U.K.’s Economic Rebirth

The pound gained versus multiple currencies today and touched the highest rate in 2 months versus its main rival, the euro, as Bank of England officials affirmed that growth is returning to U.K.’s economic outlook and stimulus measures will be lifted on a foreseeable future.
London stocks had a very positive performance today attracting traders to bet on pound-priced assets after the Office for National Statistics posted a report that indicated an increase in the nation’s inflation for the first time in 8 months, suggesting that U.K.’s economy is walking its way out of recession, providing support for the pound to gain in the intraday even versus the U.S. dollar, which had an extremely positive performance today due to market’s risk averse aspect today. Bank of England officials affirmed that multiple reports featuring employment data and consumers surveys are giving solid evidences that U.K.’s economy stopped to deteriorate and is finally having its late recovery.
The perfect combination to push up the pound rates today came with the Bank of England statements added to the inflation numbers, providing enough signals for traders to bring capital back to the British Isles, which had previous months of extreme unattractiveness. If the recuperation of British economic conditions follows, the pound is likely to reach much higher levels, specially versus the euro.
GBP/USD traded at 1.6777 as of 16:43 GMT from a previous rate of 1.6742 yesterday. EUR/GBP traded at 0.8840 from 0.8911...link

Dollar Rises on Low Optimism Session

The U.S. dollar gained massively versus the euro and most of the 16 main traded currencies as risk aversion rose sharply in the beginning of the day as the IMF stated that the global economic recovery will be sluggish, attracting traders to the safety of the greenback.
After the International Monetary Fund statement today affirming that the economic rebound will be a slow and complicated process, the U.S. dollar found grounds to rise significantly together with the Japanese yen, as both currencies are considered the best safe refuge investments for turbulent times. Several U.S. economic data reports were published today mostly showing results below forecasts, which added pessimism today in an already bearish scenario of weak stocks performance, giving a breather for the U.S. dollar that gained distance from the $1.50 level versus the euro, being trading around the $1.45–1.50 band since the beginning of September.
The economic recovery process will be long, and it can be even considered that the global economy will not see a such a fast growth as the one experienced before the crisis for the next decades. The dollar is still on the pressure but, despite that, eventual days of pessimistic news are likely to maintain the dollar in a slow decaying trend, not as fast as many currency specialists suggested.
EUR/USD traded at 1.4834 as of 16:12 GMT from a previous rate of 1.4972 i the intraday. USD/CAD traded at 1.0591 from 1.0442.

Chilean Peso Breaks Another Record on Copper Rise

The main Chilean metallic export provided support for the peso to reach the highest level in 16 months versus the greenback as demand for copper is on the rise after global economies showed further signs of recovery this Monday.
Risk appetite in trading markets remained high this Monday after Japan posted a higher than expected quarterly growth, raising attractiveness for emergent markets assets and providing support for the peso to establish another record high versus the less appealing U.S. dollar, which lost versus most of the main traded currencies today.
USD/CLP traded at 496.55 as of 17:19 GMT from an opening rate of 501.90...link

Growth Forecast Sets Brazilian Real High

The Brazilian real benefited today from positive events in both domestic and international spheres as risk appetite rose worldwide, maintaining the Brazilian currency as the best performing currency among the main traded in foreign-exchange markets in 2009.
Brazilian and global stocks rose today after the Japanese currency posted a higher than expected growth and a the majority of analysts agree that the South American economy will expand more than previously imagined in 2010, forcing the real up versus most of the main traded currencies this Monday.
USD/BRL traded at 1.7092 as of 16:59 GMT from an opening rate of 1.7225 today...link

Bullish Week Start for Canadian Dollar on Stocks

The Canadian dollar continued its previous week rally this Monday as risk appetite remained strong globally, increasing demand for Canadian commodity exports and creating an attractive scenario in Toronto equities markets, as appeal for safety declined, forcing the greenback down.
The Asia-Pacific Economic Cooperation forum agreed that stimulus for economies to become more solid should remain for a certain amount of time, which caused risk appetite to rise this Monday, as these measures are likely to provide a faster recovery in most global economic regions, which brought investors to bet in a more attractive Canadian currency, as a hastened economic recovery is likely to push up demand for Canadian energetic and metallic commodities, bringing capital inflows to the North American nation. Japan posted a higher than expected quarterly economic growth this morning in Tokyo, which also improved markets sentiment in Asia, decreasing attractiveness for the U.S. dollar, which lost against its Canadian counterpart, but also to all other main traded currencies.
The Canadian dollar is profiting from optimism among investors, even if the Bank of Canada remains against a strong currency that could slow down the economic process in the nation. The call for stimulus to continue were essential for the loonie to climb even higher, and its likely that this trend will follow for the next days until a shift in market sentiment happens.
USD/CAD traded at 1.0455 as of 16:22 GMT from a previous rate of 1.0535 when markets opened yesterday.
CAD/JPY traded at 85.48 from 85.92...link

Japan Growth Force Greenback Down

The U.S. dollar started this week losing versus its Canadian counterpart and the euro as the wealthiest economy in Asia posted an unexpected quarterly growth, signaling traders that economic conditions in Asia are improving driving capital flows towards high-yielding options.
The U.S. currency had a poor performance this Monday after the Japanese economy posted a preliminary gross domestic product growth of 1.2 percent for this year’s third quarter, a much higher level than the 0.7 percent forecast, creating a risk appetite scenario in Asia that favored higher-yielding currencies like the Aussie and kiwi dollar, and set the attractiveness for the relative profile of the U.S. dollar down, as Japan was being one of the slowest rebounding economies from the global slump, fact which changed today providing support for Japanese stocks to rally strongly. The yen also gained versus the dollar as investors are repatriating assets to the Asian nation.
The dollar started another week fliriting with the $1.50 level versus the euro, and its likely that this level will once again be surpassed as risk appetite started strong once again this Monday, according to analysts. The global economy still has room for sharp rebounds and it affects traders sentiment in a way that they will look for yield, and that’s a dollar-negative factor which is likely to be present for the next months.
EUR/USD traded at 1.4974 as of 15:21 GMT from 1.4946 when markets opened yesterday. USD/JPY traded at 89.40 from 89.60...link

Canadian Dollar Bullish Versus U.S. Counterpart

The Canadian dollar had a second week of gains versus its U.S. counterpart specially as risk appetite rose this Friday as major European economies posted a quarterly economic growth, favoring commodity exporter countries currencies like the loonie in foreign-exchange markets.
The loonie extended its gains before the end of this week’s session as the national trade balance posted a diminished deficit for the previous month, indicating that exports can overtake imports in a mid-term future, as demand for Canadian commodities are on the rise while major economies rebound around the globe. The U.S. trade balance figures deteriorated beyond expectations, fact which also allowed the Canadian dollar to gain terrain further versus the greenback, even if the Bank of Canada still stresses on the fact that a strong currency can slow down the recovery process in Canada. Stocks rose globally, favoring even further the Canadian currency profile.
This week was rather volatile with risk appetite levels playing a major role for the Canadian currency. In Friday’s session several reasons provided support for the loonie to grow further, and it is very likely that if risk appetite continues strong among traders, the Canadian dollar will once again rally towards parity with its U.S. counterpart.
USD/CAD closed the week at 1.0512 from 1.0738 in the beginning of the week...link

Brazilian Real Ends Losing Streak on Global Optimism

After speculations suggesting that the Brazilian currency will suffer further interventions from the national central bank to stop is rally, the real had a negative performance this week that only ended today after global optimism rose attractiveness for assets in emergent markets.
The Brazilian real managed to rise more than 1 percent versus the U.S. before the end of today’s session as positive data in Europe and Asia forced up demand for commodities and rose risk appetite, bringing investors to inject capital in Brazil despite speculations that further measures to stop the currency’s rally will be taken.
USD/BRL closed at 1.7269 from an opening rate of 1.7345...link

Chilean Peso Posts Biggest Gains Since June

The Chilean peso had the highest weekly rise in 5 months after the national central bank did not announce measures to halt the currency’s rally, leaving behind speculations that a government intervention will shun investors from the South American nation.
After a Chilean government interest rate policy statement that did not mention that a strong peso could jeopardize the economic recovery in the country, the Chilean currency managed to extend its gains to higher levels making this week to be the sharpest 5 day winning streak since June.
USD/CLP closed the week at 502.05 from an opening rate in Friday of 507.45...link

British Pound High on Giant Airlines Fusion

The British pound had an excellent performance in the beginning of this Friday’s session as talks that the biggest airline in the country will merge another European giant in the sector brought optimism to London equities markets making the pound to benefit of a positive scenario.
After British Airways Plc and Iberia Lineas Aereas de Espana SA, two of the biggest airlines in Europe decided to merge, the pound headed to a third straight winning week versus the U.S. dollar and gained terrain versus the euro, which according to some speculations could reach parity with the pound in the mid-term future. An optimism tone today in Britain regarding the economic recovery that is coming slower in the country than in other countries in Europe provided support for the FTSE 100 Index to post a second week of consecutive gains, giving a breather for the pound which is finally having a more sustained growth these past weeks...link

Dollar Down After Significant Rally

This week has been extremely volatile for the U.S. dollar as different events moved markets sentiment among traders, forcing the dollar slightly down today after it rallied from the lowest level in 2009 versus the euro yesterday.
The U.S. dollar did not have enough strength to continue yesterday’s winning streak as several reports, specially from Europe brought risk appetite once again to markets attracting traders to euro priced assets as Germany, the wealthiest and most relevant economy in the Eurozone, grew further in the third quarter and France also posted positive numbers, indicating that the recovery in the region is solid and backed by fundamental factors. A report in the U.S. is likely to indicate an improved consumer sentiment in the U.S., decreasing attractiveness for safer currencies like the greenback and the yen, making both to rank among the biggest losers today in currency markets.
The German quarterly economic figures were regarded with high expectations among traders, since it was not clear if the past quarter figures would be repeated, causing risk aversion to climb, but after the reports’ released, even if European numbers were not as high as analysts suggested, the fact that figures came positive were already a relief in markets in the region, helping the euro to slash yesterday’s decline partially.
EUR/USD traded at 1.4884 as of 11:34 GMT from 1.4815 hours before the European quarterly reports. AUD/USD gained to 0.9286 from 0.9206...link

Brazilian Real Down on Intervention Talks

The Brazilian real posted another negative session today as movements in the central bank led traders to speculate that further measures will be taken to halt the real’s rally, which already rose 34 percent versus the greenback this year.
After a central banker was transferred to the Brazilian Finance Ministry yesterday, concerns rose that both federal institutions are likely to coordinate further measures to control the real’s rally, forcing the Brazilian currency down in foreign-exchange markets today...link

Brazilian Real Down on Intervention Talks

The Brazilian real posted another negative session today as movements in the central bank led traders to speculate that further measures will be taken to halt the real’s rally, which already rose 34 percent versus the greenback this year.
After a central banker was transferred to the Brazilian Finance Ministry yesterday, concerns rose that both federal institutions are likely to coordinate further measures to control the real’s rally, forcing the Brazilian currency down in foreign-exchange markets today...link

Canadian Dollar’s Rally Halted as Commodities Falter

The Canadian dollar had the first day of losses versus its U.S. counterpart and several other key-currencies as the price of commodities declined this Thursday after a sharp rise that started in the beginning of this week’s session.
The loonie is highly dependent on commodities rates since Canada is a main supplier of energetic and metallic commodities to the United States, and today, as the these markets had a breather, the loonie posted its first negative day in this week following the poor oil charts performance.
USD/CAD traded at 1.0534 as of 18:43 GMT from a previous rate of 1.0452 yesterday.

Aussie Dollar Extends Record High on Jobs Data

The Australian dollar continued its yearly rally to set a new record high in 2009 after a report indicated an improved number of monthly jobs added in October, suggesting that the nation’s central bank is likely to continue its current policy of rate hikes for the next meeting.
The Australian dollar together with the Japanese yen were the biggest winners this Thursday as risk appetite declined, favoring the Japanese currency safe refuge profile and a report in Australia showed an increased number of jobs added in October, helping the Aussie to touch a two weeks high versus the yen, and the highest level in 15 months versus its U.S. counterpart and the British pound. The Australian dollar has been ranking as the second best performer in 2009 among the 16 main traded currencies, thanks to the country’s economic resilience and the early decision of the Reserve Bank of Australia to start a consecutive monthly interest rates hike that is likely to be a record of 3 straight months if confirmed in December.
Analysts are highly optimistic that such employment report will be essential to provide support for the central bank to continue its interest rates rise policy, as favorable jobs data are a strong signal of stability and recovery for any economy leaving a recession period.
AUD/CAD traded at 0.9772 as of 12:46 GMT from a previous rate of 0.9731 yesterday...link

Yen Rises on Chinese Government Statement

After several days driven by risk appetite globally favoring high-yielding currencies and forcing commodities rates up, the rally was halted as China affirmed that the economic recovery is uneven, raising concerns among safeties and attracting them to the safety of the Japanese currency.
The Japanese currency beat almost all of 16 main traded currencies in foreign-exchange markets today after the Chinese Premier Wen Jiabao made rather negative statements regarding the ways the global economic recovery is following, which was more than enough to halt a rally that started in the beginning of the week and decreased attractiveness for refuge currencies like the U.S. dollar and the Japanese yen. The only currency that managed to gain versus the yen this Thursday was the Australian dollar after the South Pacific nation, against most forecasts, added jobs in the previous month providing support for the Aussie to maintain its position of second best performing currency in 2009.
Analysts point that not only Chinese Premier’s comments influenced markets today, as it can be understood that after 3 days of strong bullish patterns, a number of traders would be repatriating their profits, which causes a corrective movements for the yen which has been losing during the past months when risk appetite is strong.
EUR/JPY traded at 134.19 as of 11:54 GMT from a previous rate of 135.35 in the intraday. GBP/JPY traded at 148.79 from 149.52...link

Australian Dollar Remains Bullish on China Growth

The Australian dollar, the second best performing currency in trading markets this year after the Brazilian real, climbed further as China, its main trading partner, posted positive economic figures this Wednesday, adding confidence to the already attractive Aussie.
After China posted monthly reports indicating an increased industrial production and improved retail sales for September, the Australian dollar found grounds to remain positive versus most of its rival currencies, trading near the highest level in 2009 versus its U.S. counterpart.
AUD/USD traded at 0.9289 from a rather neutral level yesterday..link.

British Pound Down on BOE Unexpected Comments

The British pound went down versus most of the 16 main traded currencies this Wednesday after Bank of England officials affirmed that a weaker pound can boost the economic recovery in the nation, shunning traders from pound priced assets.
After Bank of England posted statements indicating that the inflation will remain below the 2 percent target for an extended period and Mervyn King affirmed that a weak pound can help the British economy to escape from the worst recession in its modern story, the pound declined consistently versus most of its rivals on foreign-exchange markets.
GBP/USD traded at 1.6554 as of 18:01 GMT from a previous rate of 1.6737 yesterday...link

Dollar to Fall in 2010 on Record Low Interest Rates

The U.S. dollar touched its lowest level in more than a year versus most of its main rival currencies as speculations suggest that the Federal Reserve will maintain borrowing costs in a historic record low, as the economy still urges for stimulus to provide a more solid recovery.
Several reasons are impacting further the greenback’s outlook among traders in currency market, as risk appetite remains strong, favoring high-yielding currencies in commodity-linked and emergent countries, as well as the dollar has been losing its status as the world main reserve currency, with interest rates at an all time historic low, forcing most of the investors to avoid assets in the North American nation, and shift the nature of their portfolio towards risk and more interesting opportunities overseas, setting the dollar to a new record low in 2009 this week, extending a losing streak that stared in the very beginning of the present month...link

Crude Oil Above $80 Forces Canadian Dollar Up

Canada is one of the main suppliers of oil to the United States, and as the barrel passed the $80 dollars mark, the Canadian currency found support to extend previous gains as investors return to purchase assets in Canada, favoring the loonie in currency markets.
Despite the Bank of Canada position against a strong loonie, the Canadian currency is rallying once again as the crude oil, one of the nation’s main export is extending its rally after it touched the psychological mark of $80 per barrel, raising attractiveness for the Canadian dollar which rose versus most of 16 main traded currencies today.
USD/CAD traded at 1.0515 as of 16:51 from a previous rate of 1.0555 in the intraday...link

Chilean Peso Hits Record High on 2010 Growth Report

The commodity export driven economy of Chile is set to growth more than previously expected for the next year in a report published today that helped the national peso to reach the highest level in 2009 versus the U.S. dollar.
The Chilean peso managed to reach the highest rate in 15 months today after the national central bank affirmed through a report that the economy may grow as much as 4.4 in the next year, indicating that the vigorous South American nation managed to recover entirely from the global slump.
USD/CLP traded at 507.25 as of 16:33 GMT from an opening rate of 512.45 today...link

Dollar Rises From Record Low

After being traded at the lowest level in 15 months yesterday, the greenback rebounded mainly versus higher-yielding options, as traders indicated that the U.S. currency devaluation could be too high and not compatible with domestic and global economic fundamentals, giving a breather to the greenback.
The dollar managed to pare some of its losses today as market sentiment shifted from yesterday’s strong bullish pattern, as well as some major rivals for the greenback had some domestic issues that influenced their performance this Tuesday in trading markets. The pound witnessed a significant fall that was later partially corrected versus the greenback as Fitch Ratings division of the financial conglomerate affirmed that the monetary health of Great Britain is far from being optimal and the country could eventually experience a downgrade on its rates, which could cause a very negative trend for the U.K.’s currency. The Brazilian real lost versus the dollar and all 16 main traded currencies as concerns surged that the government will extend taxes to foreign investors to spot the national currency to climb further.
Analysts consider today’s rebound for the U.S. currency as a normal corrective movement, and it would not necessarily main that the dollar will not fall further for the next days, when it could actually, touch a new record low for the current year.
EUR/USD traded at 1.4955 as of 16:24 GMT from a previous rate of 1.5021 yesterday. GBP/USD traded at 1.6692 from 1.6843 yesterday....link

Pound Declines on Pessimistic Credit Rating

The Pound fell versus most of 16 main traded currencies after one of the most respected financial institutions in the world affirmed that the credit situation in the U.K. remain as one of the most delicate among the wealthy nations, decreasing attractiveness for the British currency.
Attractiveness for U.K. assets and currency suffered a negative impact today as Fitch Ratings affirmed that the situation in the Great Britain is the least optimistic among countries rated by the Fitch Group as AAA, pointing out specially the fact that the country needs a large budget adjustment to achieve stabilization. Standard & Poor’s, another of the most influential financial groups in the world, also stressed on the fact that the U.K. monetary system is facing complications, and a downgrade on U.K. investment rating would not be a surprise, decreasing even further attractiveness among traders to inject capital in the British Isles, which have been suffering consecutive negative economic events during the past months.
Analysts affirm that if the U.K. credit rating would actually suffer a downgrade, it would influence severely the pound’s movements, as the psychological consequences would be extended to a much deeper level, shunning traders not only from the U.K.’s currency options, but also stocks and general investments in the country.
GBP/USD traded at 1.6692 as of 10:38 GMT from as high as 1.6843 yesterday. EUR/GBP rose to 0.8989 from 0.8921 in the intraday.
If you want to comment on the Great Britain pound’s recent action or have any questions regarding this currency, please, feel free to reply below...link

Brazilian Real Rises on G-20 Stimulus

The Brazilian real was one of the most benefit currencies today with the Group of 20 statement indicating that stimulus measures to support the global economic recovery will be extended, increasing risk appetite among traders today that opted for assets in emergent markets.
The Brazilian currency climbed today to the highest level in 2 weeks, flirting once again with the $1.70 psychological level with the the U.S. dollar, as several commodities abundant in Brazil rose following G-20 statements that helped another day of optimism to induce investors to inject capital in the South American nation.
USD/BRL traded at 1.7085 as of 16:38 GMT from an opening rate of 1.7175.
If you want to comment on the Brazilian real’s recent action or have any questions regarding this currency, please, feel free to reply below...link

Rupee to gradually gain in 2009, reserves to reach $15.5 billion

KARACHI: Pakistani rupee is likely to gain gradually against the US dollar during the rest of the year, says a foreign exchange analyst of a leading foreign bank.

Priyanka Chakravarty, an India based FX strategist at Standard Chartered Bank, says the IMF’s decision to allocate an additional $3.2bn to Pakistan, and the ensuing sovereign credit rating upgrade by Standard and Poor’s, bode well for the currency. She says the rupee is not likely to lose value despite pressure from a deteriorating trade deficit due to rising commodity prices...link

Rupee to gradually gain in 2009, reserves to reach $15.5 billion

KARACHI: Pakistani rupee is likely to gain gradually against the US dollar during the rest of the year, says a foreign exchange analyst of a leading foreign bank.

Priyanka Chakravarty, an India based FX strategist at Standard Chartered Bank, says the IMF’s decision to allocate an additional $3.2bn to Pakistan, and the ensuing sovereign credit rating upgrade by Standard and Poor’s, bode well for the currency. She says the rupee is not likely to lose value despite pressure from a deteriorating trade deficit due to rising commodity prices...link

FBR takes measures to increase tax-GDP ratio

LAHORE: The Federal Board of Revenue is taking all possible measures to increase Tax-GDP ratio by bringing into the tax net untapped sectors of the economy.

This was stated by Director General Income Tax, Khawaja Shaukat Ali while speaking at inauguration of FBR Facilitation Center at the Lahore Chamber of Commerce and Industry on Thursday. LCCI President, Mian Muzaffar Ali, President-elect, Zafar Iqbal Chaudhry, Vice President-elect, Faisal Iqbal Sheikh and former President, Mian Misbahur Rehman were also present on the occasion...link

‘Investment led boom in local stock market’

KARACHI: The stock market has attracted about $225 million during one and a half month and more foreign investment will flow in to further push up KSE 100-Index in times to come, market sources said Thursday. They said that there is hardly any leverage buying in the market and trading was carried out purely on investment basis. Foreign and local investors have returned to Pakistani capital market as they see good return on their investment. “The rising foreign exchange reserves, and expected cut in interest rates and cash reserve ration (CRR) and positive expectations from Friends of Democratic Pakistan (FoDP) meeting are other attraction for them,” said the elected director, Karachi Stock Exchange Haji Ghani. app...link

FOREX-Yen, euro gain vs dollar; BoE's King hits pound

MARKETS-FOREX (UPDATE 6):FOREX-Yen, euro gain vs dollar; BoE's King hits pound

* Dollar falls against yen, focus on 90 yen level

* Euro retreats from 1-year high vs dlr after German data

* Sterling takes hit after BoE King's weak pound comments

* G20 meeting in Pittsburgh in focus

(Updates throughout, adds comment, changes byline, dateline, previous LONDON)...link

Forex: Senate Approves Kerry-Lugar Pakistan Aid Bill

(RTTNews) - U.S. President Barrack Obama announced Thursday that the Senate has approved a newly-negotiated version of the Kerry-Lugar Pakistan aid bill that would triple the non-military aid to Pakistan, reports say. He made the announcement while addressing the Friends of Democratic Pakistan (FODP) summit.

The Senate approved the measure through a process known as "Unanimous Consent"--where the Senate doesn't actually vote on the bill, but nobody raises any objections, so it goes through--to pass the measure that approves $1.5 billion a year over the next five years for democratic, economic and social development assistance to the Islamic nation...link

Pakistan's forex reserves rise to $14.48 bln

KARACHI, Sept 24 (Reuters) - Pakistan's foreign exchange reserves rose to $14.48 billion in the week that ended on Sept. 19 compared with $14.36 billion the previous week, the central bank said on Thursday.

Reserves held by the State Bank of Pakistan rose to $10.94 billion from $10.84 billion a week earlier, while those held by commercial banks also edged up to $3.54 billion from $3.52 billion a week earlier, the central bank said in a statement..link

International Forex Rates in US Dollar (USD)

Currency	Symbol	Units per USD	USD per Unit
Australian Dollar	AUD	1.1552	0.8656
Canadian Dollar	CAD	1.0916	0.9161
Japanese Yen	JPY	90.3666	0.0111
Saudi Riyal	SAR	3.7501	0.2667
Singapore Dollar	SGD	1.4167	0.7059
U.A.E Dirham	AED	3.673	0.2723

CRENCY GRAPH (US DOLLAR)

US Dollar

Buying 82.70
Selling 83.00

BULLION RATES

Closing rates as On Thu, September 17, 2009 Bullion rates in Rupees per 10 grams
Karachi
Gold Tezabi	26828.00
Silver Tezabi(24-ct)	394.28
Lahore
Gold Tezabi(24-ct)	N/A
Gold Tezabi(22-ct)	N/A
Gold Tezabi(21-ct)	N/A
Silver Tezabi(24-ct)	N/A

SHORT TERM INTEREST RATE

	US	0.25%
	Japan	0.10%
	EURO	1.00%
	UK	0.50%
	AUS	3.00%
	CAN	0.25%

ECONOMIC INDICATION

ANNUAL	2008/09
Foreign Debt	$50.1bn
Per Capita Income	$1046
GDP Growth	2.0%
Average CPI	20.77%
Monthly	July
Trade Balance	$-1.15 bln
Exports	$1.49 bln
Imports	$2.64 bln
Weekly	September 10, 2009
Reserves	$14.243.bln

forex rate pakistan

Updated on: Sat, September 19, 2009, 11:42 (PST) Courtesy : ECAP
Remittance	Buying	Selling	Trends
USD	82.70	83.00
GBP	134.30	137.50
SR	21.75	22.11
UAE	22.23	22.62
NEWZ	43.5	43.8
AUS	70.49	71.99
EUR	119.59	122.10
CAD	75.79	77.42
HONG	10.37	10.71
IND	1.58	1.68
JPY	0.8895	0.9065

FOREX Open market analysis

FOREX rate pakistan