Dollar in Kazakhstan exceeded 132 unexpectedly, the market seeks correction

/REUTERS, Almaty, Tatyana Seroshtanova, March 29, 05/ - The dollar at Kazakhstan foreign exchange market surged unexpectedly in the beginning of the week to KZT132.4 from 130.44 last Tuesday on growing trade volumes. Market participants comment on growing volumes of clients' orders and wait for correction in the nearest term. "Reasons that affected the dollar rate growth included clients' orders, little export inflows and speculative component", TuranAlem dealer said. Weighted average rate of Kazakhstan tenge during main Exchange session rallied to KZT132.40 per $1 from KZT131.69 of previous day. Trades value rose to $78,380 m from $22,365. Rate correction may occur in the nearest two to three days. "In a while we will return back to some point, though to the level of 130 we may come only in a couple of weeks", ABN AMRO Kazakhstan dealer told. MARKET PARTICIPANTS GUESSES In traders opinions, currently no legitimate reasons exist for dollar to appreciate at local market. "To be honest, I don't know what the problem is. It all began from clients orders. One of the possible reasons is that certain Kazakhstan company tries to buy huge assets abroad", ABN AMRO Kazakhstan dealer said. A source at banks told Reuters that unexpected dollar rate increase might have been induced by the intentions of the government to accumulate funds in currency needed to buy 50% stake of British BG in a consortium that develops Kashagan oilfield. Energy minister of Kazakhstan refused to disclose the details of a deal, though source familiar with the situation said that Kazakhstan would pay $630 m and would borrow for these purposes. [2005-03-29]