KARACHI: First session of Ramazan commenced on the positive note on Tuesday as the rupee managed to gain sharply against dollar on the interbank market due to easy supply of the US currency, money experts said. The rupee gave up overnight weakness in relation to dollar, rising 27 paisa for buying and selling at 82.78 and 82.83, they said. Open Buying Rs 82.80 Open Selling Rs 82.90 Interbank Closing Rates: Interbank Closing Rates For Dollar On Tuesday. Buying Rs.82.78 Selling Rs.82.83 (BRecorder) Visit Finance.KalPoint.Com for latest financial stories...
During the second Asian session yen headed higher as share markets fell and investor interest in higher-yielding currencies ebbed, while currencies took in their stride news that Federal Reserve chief Ben Bernanke would be re-appointed. A US administration official said President Barack Obama would reappoint Bernanke for a second term as Fed chairman.
OPEN MARKET RATES: The rupee recovered 10 paisa in terms of the US currency, rising 10 paisa for buying and selling at 82.80 and 82.90, dealers said. The rupee also picked up 15 paisa in relation to the euro for buying and selling at Rs 117.55 and Rs 118.05, they said.
THE RUPEE: dollar suffers all-round fall
Posted by imdurrani Labels: forex market, forex trading, Pak Economy, pakistan, Pakistani Rupee, World CurrenciesChina still faces challenges to recovery: planner
Posted by imdurrani Labels: Asia, China, global economy, world economy
"The serious fall in external demand is a pronounced problem for China's economy, and our country is still facing great pressure in the employment situation," Zhang told a session of the standing committee of parliament, according to state radio. Presenting a report on the economy's performance, he said domestic demand was still not strong enough a driver of growth, and that housing prices in some cities had risen by too much.
Zhang added the global economy would take a long time to recover from recession, and that improvement over the long run would involve many ups and downs along the way. The government would make efforts to increase domestic demand and stabilise exports, he said, without elaborating.
Germany exits recession, prospects brighten
Posted by imdurrani Labels: Europe, global economy, world economyWednesday, August 26, 2009
The data ended four straight quarters of contraction, and could offer support for Chancellor Angela Merkel's ruling coalition as a federal election approaches on September 27. Having overcome its deepest slump since World War Two, analysts believe the German economy should rally as companies ramp up production and rebuild their depleted stocks.
"The big decline in inventories suggests that these need to be built up again and that production will get a boost," said Juergen Michels, an economist at Citigroup in London. "The recovery has a relatively solid foundation." Government stimulus measures, such as a subsidy for scrapping old cars in exchange for newer, more environmentally friendly models, were seen by many as a key driver of growth in the April-June period.
"Despite today's positive numbers, the German economy is still on a drip, getting infusions from policymakers," said Carsten Brzeski, an analyst at ING Financial Markets. "The coming weeks and months look good but some doubts remain whether the economy can already stand on its own feet." The figures showed that adjusted for working days, German GDP contracted by 5.9 percent on the year in the second quarter, confirming preliminary estimates from August 13.
In the first quarter, it shrank by 6.7 percent. Many analysts believe job losses in Germany will accelerate in the autumn as the effects of government support for the labour market - notably incentives for firms to put workers on shortened hours rather than fire them - wear off.
In a breakdown of the data, the Office said net trade added 1.6 percentage points to GDP as a sharp drop in imports outpaced a decline in exports. Private consumption added 0.4 points and a liquidation in inventories subtracted 1.9 points. Since Germany reunified in 1990, inventories had only once hit GDP harder, an Office spokesman said.
Then, in the last quarter of 2006, the blip was caused by statistical factors, and did not properly reflect the state of the economy at the time, he added. Latest indicators, such as the Ifo institute's gauge of business sentiment, have risen, suggesting the recovery is gaining strength.
Indian rupee drops
Posted by imdurrani Labels: Asia, forex market, India, World Currencies, world forex
"There was only buying today. Even when Sensex was up 400 points yesterday, the dollar-rupee was bid. Today equities were negative for large part of the day, so one can imagine," said Madhusudan Somani, head of foreign exchange trading at Yes Bank.
"There was decent demand from oil companies, along with some month-end demand as well, keeping it bid. Lack of inflows completely skews the demand-supply picture, so the downside for the dollar-rupee is limited," he added. One-month offshore non-deliverable forward contracts were quoting at 48.80/90.
In the currency futures market, the most traded near-month contract on the National Stock Exchange and MCX-SX closed at 48.7775 and 48.7850 respectively, with the total traded volume on the two exchanges at a high $2.2 billion.
Sterling hits 2-1/2 month low
Posted by imdurrani Labels: forex market, World Currencies, world forex
Surprisingly strong US housing and consumer confidence data fuelled a stock market recovery which lifted sterling as much as a cent from the day's low versus the dollar, but wasn't enough to fully eclipse the bearish sentiment clouding it.
The yield on the two-year UK gilt fell to its lowest ever level, reflecting the view that UK interest rates will stay low for a protracted period to revive the struggling economy. British mortgage data on Tuesday were mixed - mortgage approvals in July jumped to their highest in 17 months but growth in net lending was the weakest in nine years.
"We've had a cumulative build in risk appetite during the day ... but one thing that's been striking has been the powerful upswing in cable is starting to peter out, and euro/sterling is starting to trend higher," said Robert Minikin, senior currency strategist at Standard Chartered in London.
At 1505 GMT, the euro was up 0.4 percent on the day at 87.45 pence. The euro rose to its highest level since June 8 at 87.575 pence, pushing further away from technical support at the 100-day moving average of 86.96 pence. Euro/sterling, on its longest winning streak since March of five consecutive daily gains, on Monday posted its first close above the 100-day moving average since April 4, Reuters charts showed.
Eight MoUs signed during Zardari's visit to China
Posted by imdurrani Labels: Asia, China, Pak Economy, pakistan
President Zardari during his four-day visit to Zhejiang and Guangdong provinces - China's two most prosperous models of economic development, not only witnessed the signing of MoUs particularly on power generation and agriculture, but also held a series of meetings with China's business giants.
The President invited a Chinese firm to visit Pakistan for coal gasification in Sindh and met Chinese Foreign Minister to discuss a host of bilateral, regional and international issues. Talking to journalists spokesperson to the President Farhatullah Babar said the centre piece of the President's visit was the memorandum of understanding signed particularly the one relating to the building of 7,000 MW hydro power in Bunji in the Northern Areas.
The project will be built on BOOT (build, operate, own and transfer) basis with total foreign investment. The MoU was signed by the Water and Power Ministry of the government of Pakistan and China's Three Gorges Project Corporation that has recently built the world's largest hydropower project in China capable of generating over 22,000 MW and a water reservoir spread overt 650 square kilometers.
During the visit, Pakistan also invited private companies in China engaged in building small and medium dams to bid for the construction of twelve small and medium dams the sites for which have already been identified in the four provinces. Five of the dams will be built in Balochistan, four in Sindh, two each in Punjab and Frontier, he said. A MoU on co-operation in drug regulation and production of hepatitis B and C vaccines was also signed during the visit.
The Sindh Agricultural University (SAU) in Tandojam and the South China Agricultural University (SCAU) in Guangzhou province also signed MoU for co-operation in agricultural research, plant protection and animal husbandry. The President also visited the Pearl River Fisheries Research Institute where another memorandum of understanding was signed for setting up of a model fisheries farm in Pakistan and also to train Pakistani fishermen in the latest techniques.
Wednesday August 26, 2009
Further, to resolve the non-NFC issues the province would also ask the Commission for approximately Rs 175 billion, including Rs 19 billion GST on services unconstitutionally collected by the federal government during last ten years. This was stated by Information Minister Shazia Marri while briefing media at New Sindh Secretariat Building about the In-House Committee meeting held at Chief Minister House under the chairmanship of Chief Minister Qaim Ail Shah.
The meeting was attended by Sindh representative for NFC Commission Qaisar Bengali, Sardar Ahmed, Saifullah Dharejo, Taj Hyder, Finance Secretary Fazlullah Pechoho and Marri. Demanding due recognition for Sindh as a revenue-engine, which contributes 70 percent revenue to the exchequer, the province would stress need for a "fair deal" through adopting multiple criteria, including revenue, population, area, backwardness, geography, etc, Marri said.
Area and backwardness would also be mentioned as genuine demands of Balochistan and NWFP. "We have identified that we would talk for multiple criteria and would also support all fair demands of the other provinces," she added. Later, talking toBusiness Recorder the information minister said that the other three provinces would also back Sindh's multiple criteria formula.
"The dialogue is taking place on various platforms... and I am sure that the future meetings would bring more positive results," she hoped. Stressing importance of an early resolution of NFC Award issue, Marri urged the provinces and political parties to adopt a "reasonable approach" while dealing with the important issue of resource-distribution.
They said that SBP has instructed banks and DFIs to make proper arrangements for the recovery of outstanding loans against sugar stocks with the aim to ensure on-time release of sugar in the market. Sources said that after getting three months grace period, a lobby of sugar mills is trying for another extension for the retirement of loans and advances obtained against sugar stocks.
However, SBP has decided, in principle, not to grant another extension to the sugar mills for retirement of the over Rs 25 billion advances due to the current sugar crisis in the country and new sugarcane crushing season (starting from November) in which banks would provide new loans and advances.
Following the Economic Co-ordination Committee (ECC) decision, the SBP has already granted three-month extension to the sugar mills for the 100 percent retirement of outstanding loans and advances. Although the central bank had fixed July for the retirement of sugar advances, but on industry's demand and ECC decision it allowed the sugar mills to retire their loans by end of October.
With three-month extension sugar mills have been instructed to phasewise adjust entire loans and advances against pledge of sugar stock (both raw and refined) by 31st October, 2009 as against July 31, 2009. Sugar mills were also allowed to retire their dues in four phases starting with 25 percent till July, 2009, 25 percent by end August, 25 percent by end September and 25 percent by end October, 2009.
The central bank has also started close monitoring of banks and DFIs for recovery of outstanding loans against sugar stock on fortnightly basis with the aim to ensure timely release of sugar stocks in the market.
Sources said that recovery of loans and advances by banks and DFIs is on track and borrowers are adjusting their monthly target of 25 percent loans against the pledge of sugar. Banks and DFIs have provided overall Rs 52 billion financing to sugar mills for sugarcane crushing during the season 2008-09.
Out of total disbursement, banks have recovered 38 percent of their loans and advances extended to Sugar Mills against pledge of sugar stocks (both raw and refined) since June 2009. As on June 30, 2009, the loans and advances against pledge of 1.65 million tons were Rs 40.18 billion which have been reduced to Rs 25 billion against pledge of 1.029 million metric tons sugar on August 15, 2009, sources said.
Hence, just in one and a half month 0.621 million tons of pledged sugar stocks have been released by the banks after the recovery Rs 15 billion. The country's monthly requirement of sugar stood at about 0.3 million metric tons.
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