Armenia: Foreign currency market review for the week August 5-9

13.08.2013 14:07
Armenia: Foreign currency market review for the week August 5-9

YEREVAN, August 13. /ARKA/. Average weighted US exchange rate fell by 0.94% to AMD407.25 at NASDAQ OMX Armenia last week. The trading amounted to a total of 16.78 million US dollars over the week, an increase of 2.16 times against the week before. Average exchange rate of greenback dropped by 0.94% and was 408.54 drams on Saturday August 10. The reduction in US currency exchange rate was primarily due to lower demand by businesses and individuals. The rate drop at FOREX international foreign currency market contributed to less attractive assets.

Next week the USD rate is expected to further decrease as some dealers go on increasing their positions amid the USD failure to get stuck lower of supportive 410.0 drams. The supportive level of USD will be 405.0 drams at NASDAQ OMX. Weaker USD versus other competing currencies rate at international currency market will contribute to this.
Yet, we do not rule out possible consolidation in the market facilitated by maintained demand for foreign currency among population and businesses, despite some reduction in dollar purchase. Indeed, according to the Central Bank of Armenia, net sales of foreign exchange by commercial banks last week dropped 66.94% from the week before to 4.363 million.

We expect the USD to be sold at 406.0 – 410.0 drams this week in Armenia.
The cost of euro last week was determined by developments at the global currency market where the EUR/USD rose by 0.47% to 1.3341 and the dynamics of the dram against the U.S. currency. The European currency increased as macroeconomic statistics from euro zone continued improving. Meantime, moderately negative news from the world’s biggest economy gave rise to speculations on need for continuing the program of quantitative easing in the previous amount. The strengthening dram against dollar rate scotched rise of euro on the Armenian foreign currency market. As a result, the average selling rate of cash euro in Armenia last week changed within the green zone, 0.01% only, to 548.31 drams.

The average selling rate of cash Russian ruble last week dropped by 0.55% to 12.57 drams due to strengthening dram versus dollar rate.

By Mikael Verdyan, FOREX CLUB analysts, written specially for ARKA news agency. The views of the author may not necessarily represent those of the agency

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Tags: , , Новости Армении АМИ Новости-Армения

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