At KASE trades went on with constant decline of USD exchange rate: supply obviously exceeded demand

/IRBIS, Sep.24, 99/ - The next trades with US dollar, Deutsche mark and Euro were held at KASE. 23 banks participated in the trades. Today the trades were opened with the US dollar at 139.25 tenge per unit of the currency, and on the third deal the dollar exchange rate reached 139.50, and on the 13th - the maximum mark for today's trades: 139.55 tenge per unit. Volumes of these deals were minimal. From this level the price of an American currency began to lower due to the pressure of supply. Initiative obviously belonged to the buyers, who by creating a little demand each time, confidently lead the market down. Rate of dollar decrease grew as the trade get close to the end. But the growth of demand did not bring about the course change. Supply of dollars form the banks of the second tier was so high that the exchange rate of an American currency fell to the very end of the session. The trades were closed at - 138.80/95 172 deals were made with US dollars. Weighted average dollar exchange rate made 139.06 (+1.60). Volume of the session - $5.715 mln (-$3.570 mln). Exchange rate fluctuation during the trade was 0.75%. It should be noted that a significant growth of weighted average exchange rate of an American currency relative to yesterday was caused exclusively by high opening of the trades. Today supply of dollars certainly exceeded demand, which guaranteed the decrease of the dollar exchange rate during the whole session. The dollar was sold by several participants simultaneously, and its origin can not be traced for sure. Probably, it was exporters' earnings, or may be the banks' own resources. Analysts at IRBIS tend to believe in the second reasoning, by judging some specific behaviors of the traders. Also worth to note that a speculative component in dealers' behavior almost did not exist, though the exchange rate fluctuated greatly at the trade. The market is changing, and probably is close to "overheat". But the information available at the moment is not enough to identify a new trend. One hour after closing of the trades at over-the-counter market of Kazakhstan dollar was quoted at 139.05/45 tenge per unit of the currency. Two hours later - 139.25/55. No deals were made with Deutsche mark. At closing of the session Deutsche mark was quoted at 74.50/75.50 tenge per unit of the currency. 1 deal was made with euro at 146.00 (+2.50) tenge per unit. Trade volume - EUR10 thousand (+5 thousand). At closing of the session no quotations existed for euro.