Demand for dollars from banks keeps rising

/IRBIS, 11.08.99/ - The next trades with the US dollar, Deutsche mark were held at KASE. 27 banks participated in trades. The trades were opened with the US dollar at the level of 131.58 tenge per unit of the currency. During the first 15 minutes of the session dollar was traded within a price corridor of 131.58-131.59, with the most of the deals made at 131.58. Then, the trades were shifted to another corridor: 131.59-131.60. Obviously, the level of 131.60 became a resistance level, which the dealers could not break through. At the 36th minute demand began to diminish, which put the market back at 131.59, and the most of the deals at the closing stage of the trades were made at this price. The session was closed with the quotations 131.59 (demand) / 131.60 (supply). 163 deals were made on US dollars. The weighted average dollar exchange rate has made 131.60 tenge per unit of the currency, and compared to the results of the previous session went up by 0.03 tenge (3 points). The trade volume of the session - $12.420 mln. - has decreased relative to that of the latest trades by $0.700 mln. The exchange rate fluctuation during the trade was 0.02%. Analysis of the trade results indicates increased demand for dollars from the banks of the second tier. The market conjuncture changes. Dollar is getting into focus, and therefore strengthening during two consecutive trades. Increase of dollar exchange rate up to 131.60 made the banks of the second tier to buy dollars actively. Probably, the dealers hoped to capitalize on and exchange rate difference believing that high demand would push the price up. However, demand proved to be not so high and the resistance level of 131.60 has not been broken through. Dealers who opened long positions did not sell their dollars at the end of the trades. Probably, tomorrow demand for dollars will be as high as it was today, and the banks hope to have bulls market for US dollars. It is hard to say how accurate this predictions will be, since the major operator of the market have his last words to say. It is likely that state securities redemption on Thursday and Friday will increase the purchasing power of the banks of the second tier, and the pressure from tenge on trade floors of KASE will go up at the end of the week. One hour after closing of the trades at over-the-counter market dollar was quoted at 131.57 (demand) / 131.65 (supply) tenge per unit of the currency; two hours later - 131.56 / 131.64. 5 deals totaling DEM 35 thousand were made on Deutsche marks. This amount is lower compared with that of the previous trades by DEM 225 thousand. The weighted average rate has made 72.06 tenge for 1 mark. Compared to the results of the previous session mark's exchange rate has decreased by 0.013 tenge (13 point). At closing of the session Deutsche mark was quoted at the level of 72.00 (demand) / 72.05 (supply) tenge per unit of the currency. 3 deals totaling EUR 40 thousand were made on Euro. It is higher compared to the results of the latest (03.08.99) successful trades by 5 thousand. The weighted average rate has made 141.07 tenge for 1 euro. Compared to the results of the latest successful trades the rate has decreased by 0.57 tenge (57 points). At closing of the trades European currency was quoted at 140.70 (demand) / 140.95 (supply) per unit of the currency.