Dollar rose against tenge, yet might fall due to proceeds from eurobonds

/REUTERS, Almaty, Tatyana Seroshtanova, March 17, 04/ - Dollar rose in Kazakhstan in the first half of the week influenced by speculative spirit of the market, which anticipates tenge appreciation in the short-run due to expected proceeds from eurobonds and foreign currency sale for tax payment purposes. Weighted average Kazakhstan tenge exchange rate rose on Wednesday during organized trades to KZT139.47 per $1 from Tuesday's KZT139.21 and Monday's KZT138.97. Trades volume dipped to $4,895 m from $20,465 on Tuesday. "We intend to go up (on dollar). But once again we witness pure speculation", Yertai Salimov from Halyk bank told. Aibek Burabayev, CenterCredit bank's chief dealer, agrees with him and anticipate tenge appreciation thanks to foreign currency proceeds from eurobonds floated by TuranAlem bank in amount of $300 m last week. Kazkommertsbank announced about another eurobonds issue for $500 m with roadshow in March. National monopoly, electric KEGOC claimed it attracted a syndicated loan for $81.2 m. "Participants are aware of syndicates, TuranAlem's eurobond. Once money flow in, large sales will begin. Not to say that we overcame downward trend, no. Guess we'll return to it soon", Burabayev from CenterCredit told. "The only restraining force from below is the National bank. It resides between KZT138.70 -138.80 per $1 - resistance level - most likely, we're heading for it". According to dealers, demand for American currency is also being influenced by clients repaying their foreign currency loans. "It is time for loans repayment: clients are buying greenbacks to close their currency debts, same as banks closing their positions by purchasing dollars, that's why we're up. It was done by a couple of major banks", Burabayev told. Players with bullish view induced rate's up to KZT139.60 per $1 on Wednesday, but failed to jump it over. At interbank, dollar mimicked the same path. "Today we approached KZT139.60 per $1, being unable to break it through. I left it for myself as a benchmark - it's short-term resistance level", CenterCredit bank's dealer said." "At interbank we were close to KZT139.60 per $1, but rollback occurred due to thick spreads on tenge deposits. Most likely, someone will need tenge", Halyk bank's dealer concluded. [2004-03-17]