Armenia: Forex market review for 29 May to 1 June

03.06.2013 17:56
Armenia: Forex market review for 29 May to 1 June

YEREVAN, June 3. / ARKA /. The cost of US Dollar rose by 0.70% to 417.48 drams last week at NASDAQ OMX Armenia stock exchange with the weekly trading totaling $16.92 million, an increase of 7.84% over the previous week. The average exchange rate of cash dollar increased further by 0.14% on Sunday, June 2, to 418.71 drams on the wave of the continuing demand of businesses and individuals for foreign currency, as well due to moderate devaluation sentiments in the market. The strong position of the U.S. currency at international currency markets was another factor enhancing its attractiveness.

This week the U.S. dollar is very likely to continue the growth up to 420.0 drams. However, towards the end of the week, the Armenian currency is likely to recover a little, thanks to, among other things,  a possible intervention of the Central Bank in the foreign exchange market.
According to the Central Bank of Armenia, net sales of USD last week by commercial banks dropped to 7.465 million, 46.0% less than the previous week. According to our estimates, the average selling rate of cash dollar in Armenia this week is likely to fluctuate between 415.0 - 421.0 drams.

The cost of the single European currency in Armenia last week was determined by developments at global currency markets where the EUR / USD rose by 0.49% to 1.2995, and also by the dynamics of Armenian dram relative to the U.S. currency.

After a wobbling trade at the start of the trading week the European single currency rose against the background of weaker-than-expected economic data from the U.S. where   GDP in the first quarter grew by 2.4%, down from projected 2.5%. In addition, weaker-than-expected data from the labor market also added optimism, easing investors' anxiety about the length of quantitative easing program. Against this background, the average selling rate of cash euro in Armenia last week rose by 0.49% to 546.75 drams.

The average selling rate of the cash Russian ruble last week declined by 1.26% to 13.29 drams primarily due to a decrease in its value  against the U.S. dollar in the international currency market  because of unstable dynamics of oil prices.

Mikael Verdyan, analyst for FOREX CLUB, specially for ARKA
Views of the author may not necessarily represent those of the news agency.


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