Armenia: Forex market review for July 29- August 2

05.08.2013 14:56
Armenia: Forex market review for July 29- August 2

YEREVAN, August 5. /ARKA/. Last week, the cost of U.S. dollar at NASDAQ OMX Armenia stock exchange rose by 0.15% to 411.12 drams as the weekly trading in foreign exchange totaled $7.74 million, 65.26% less than the previous week. The average selling rate of cash greenback rose by 0.14% to 412.43 drams on August 3. This week the U.S. dollar is likely to rise because of expected positive trend and also because of the continued demand for foreign currency by individuals and businesses.

However, the growth may be hindered by the falling amount of USD purchases by individuals and businesses. Indeed, according to the Central Bank of Armenia, net sales of foreign exchange by commercial banks last week dropped to $13.198 million, 16.76% less than the previous week. According to our estimates, the average selling rate of cash dollar in Armenia this week is likely to be between 410.0 - 415.0 drams.

The cost of euro last week in Armenia was defined by events at global currency markets where the EUR/ USD finished the week at around 1.3279 as well as by the dynamics of Armenian national currency against the U.S. currency.

Contradictory economic data from the world's biggest economy was unable to add optimism. Initial assessment of the level of U.S. GDP for the second quarter exceeded investor expectations, while news from the labor market was mixed: the unemployment rate fell to 7.4%, but data on the number of new jobs in the non-agricultural sector have disappointed the market participants. As a result, the average selling rate of cash euro in Armenia last week fell by 0.10% to 548.24 drams.

The average selling rate of cash Russian ruble last week declined by 0.94% to 12.64 drams due to its rising cost e against the U.S. dollar at international currency markets at the end of the week.

By Mikael Verdyan, FOREXCLUB analyst
The opinion of the author may not necessarily represent that of the news agency

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