USD/KZT at closing of the day - 138.24/34 (indicators)

/IRBIS, Dec.07, 99/ - According to REUTERS, at closing of interbank currency market of Kazakhstan on December 07 tenge quotations towards US dollar equaled 138.24/34 tenge per dollar. Compared to the results of the previous day tenge gained 13 points against US dollar both on demand and supply. In main (morning) session weighted average rate of the dollar with TOD terms equaled 138.36 (+0.02) tenge per dollar and closing quotations - 138.37/38. At closing of additional day session with TOD terms and the evening trades with TOM and SPT terms dollar was not quoted. Today dollar quotations in interbank market went below the Exchange's levels. Tenge firmed almost till the end of the day, and only the last quotations fixed a backward movement of the market. How grounded this move - is hard to say. However, comparison of the evening data and the results of the morning session is not in favor of the dollar. In IRBIS specialists' opinion, "subsidence" of the dollar exchange rate today in the second half of the day is local and caused by several reasons. Active buying of dollars on Monday's trades made fast stretching of currency positions today unjustified. Need to pay for the state securities, bought at auctions earlier this week, negatively affects the short term liquidity of the banks. Most likely, the third reason is a drop in demand of the population for dollars in cash, which got active in this sector after getting salaries, but now demand sharply declined, as employees of exchange booths say. Also, according to a poll of local dealers, conducted by REUTERS, today trend of the dollar exchange rate growth is urgent in the market. As dealers say, the banks, which were in short positions in dollars, now are opening long positions. However, dealers do not expect high devaluation rate and even forecast some strengthening of tenge on KASE on Wednesday. In general, specialists of IRBIS agree on the dealers' forecast about possible slight and local firming of tenge in tomorrow's trades. On Thursday a new surge of demand can be expected already, and dollar will gain lost points back under the influence of big amount (5,178.5 mln tenge) of state securities repayment and general upward mood of the market.