Money Market, Forex and General News - 17-07-2009
Saturday, July 18, 2009
MONEY MARKET
Excessive interest from the banking sector in government papers has driven yields down and widened the spread between the discount rate and yields in FY09.Continuing inflationary pressures and a weakening PKR will likely limit the magnitude of discount rate cut,if any..
FOREX
Inter bank opened at 82.20 & 82.25.Dollar moved both ways as market continued the volatile trend. Market topped at 82.27 but eased down later and touched bottom of 82.10.Greenback shed fifteen basis points at bid and offer to close at 82.05 & 82.10.
GENERAL NEWS
The apex regulator in the country initiated an enquiry against 5 brokers whose trading rights were earlier suspended on the complaints of investors on the settlement of claims. These settlement issues are basically the fallout of crisis taking place towards the end of Calender Year 08 following imposition of floor on the market index.
The country’s current account deficit (CAD) has shrunk by 36% in FY09 to USD 8.86 bn as compared to USD 13.87 bn in the previous fiscal year. Prime reason for this shrinkage is fall in the oil and other commodity prices following global recession. Oil comprises highest proportion of the country’s imports. Another reason for falling CAD is the local economic slowdown and steep currency depreciation that led to decrease in the demand of imports. Given the fact that exports have not in any way contributed to the falling deficit, the country stands vulnerable to the commodity prices rising again post any global economic recovery signs.
Excessive interest from the banking sector in government papers has driven yields down and widened the spread between the discount rate and yields in FY09.Continuing inflationary pressures and a weakening PKR will likely limit the magnitude of discount rate cut,if any..
FOREX
Inter bank opened at 82.20 & 82.25.Dollar moved both ways as market continued the volatile trend. Market topped at 82.27 but eased down later and touched bottom of 82.10.Greenback shed fifteen basis points at bid and offer to close at 82.05 & 82.10.
GENERAL NEWS
The apex regulator in the country initiated an enquiry against 5 brokers whose trading rights were earlier suspended on the complaints of investors on the settlement of claims. These settlement issues are basically the fallout of crisis taking place towards the end of Calender Year 08 following imposition of floor on the market index.
The country’s current account deficit (CAD) has shrunk by 36% in FY09 to USD 8.86 bn as compared to USD 13.87 bn in the previous fiscal year. Prime reason for this shrinkage is fall in the oil and other commodity prices following global recession. Oil comprises highest proportion of the country’s imports. Another reason for falling CAD is the local economic slowdown and steep currency depreciation that led to decrease in the demand of imports. Given the fact that exports have not in any way contributed to the falling deficit, the country stands vulnerable to the commodity prices rising again post any global economic recovery signs.
Labels: Economy and Business, Pakistan Economy
posted @ 11:26 AM,
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