Kazakhstan currency market expects falling of dollar in March

/REUTERS, Almaty, Tatyana Seroshtanova, March 4, 05/ - Dollar may start falling against tenge since the second half of March, after speculative growth in the beginning of February, dealers say. Weighted average rate tenge on Friday grew to 130.29 per $1 at the main session from 130.42 at the previous trades. Last Friday weighted average rate was 130.15 per $1. "There was a speculative mood because we expected exported proceeds, which did not come. Today we have seen it has come and everything has taken its place. There are suppositions that in the nearest future we will break the level of KZT130 per $1. Possibly, it will occur in the second half of March", - said dealer of Halyk bank. Participants say rates of dollar strengthening in this week were very high and because of that the National Bank once came to the market in order to smooth abrupt fluctuations. "National Bank came to the market the day before yesterday. It made its offered at 130.65 per $1, having shown dollar's support level. It was one-time coming because the market was growing fast", - said a dealer of bank CenterCredit. Dealers say dollar strengthening in this week is also explained by clients' repaying dollar credits, that's why demand considerably exceeded offer. "Dollar was growing because credits was repaid and many people converted tenge into dollars. In technical point of view, the level of 130.60 was a strong resistance and many speculators came to the market. There was even a speculative interest of some foreign banks", - said dealer of CenterCredit. Many participants forecast changing of the trend, which is preserved on the market for several months already, expecting coming of considerable volumes of exporters' proceeds in the first two days of the next week, which will be days off in Kazakhstan. On the other hand, at present banks have activated lending loans to clients. Besides, near March 20 annual tax payments will be made as well as other payments. "At present loans are given. In the principle, approximately in the end of March we, possibly will break the level of KZT130 per $1. We can't break this level since the middle of November. The market has already made four attempts. And if we can break the level of 130.10, we will be near KZT129.80 per $1", - said dealer of bank CenterCredit. "To tell the truth, dollar has been over-sold a little bit - this is a risk. But on the tenth of March, when payments will be made, may be it will not be important". [2005-03-04]