YEREVAN, November 12. / ARKA /. Last week the value of U.S. dollar at NASDAQ OMX Armenia stock exchange rose by 1.07% to 409.72 drams with weekly trading totaling $7.21 million, which was 9.31% down from the previous week. The average selling rate of a cash greenback rose by 0.71% to 411.07 drams on November 10. The rise in U.S. currency value was due to continued demand for foreign currency, as well as due to rising cost of U.S. dollar at FOREX markets. Against a possible strengthening of the American currency at global markets on the back of stable domestic demand the greenback has every reason to continue its grow in Armenia.
The growth will be prompted by falling demand for the U.S. currency on part of individuals and businesses. According to the Central Bank of Armenia, net sales of foreign exchange by commercial banks last week totaled $ 6.016 million, 60.67% less than the previous week. This in mind we expect the average selling rate of cash dollar in Armenia this week to be within 409.0 – 414.0 drams.
Last week, the European single currency mostly traded lower due to renewed concerns about the global economic outlook and the situation in Europe. Weak economic data coming from euro zone also contributed to the deterioration in investor sentiment. As a result, the average selling rate of cash euro over the past week was down by 0.51% to 525.30 drams. However, we believe that due to the delay of the euro value dynamics in Armenia on the 12th of November the average selling rate of cash euro is likely to be down to 524.00 drams.
This week against the backdrop of continued uncertainty over the situation in Greece, the single European currency will continue to remain under pressure. Economic news form the USA and eurozone will have a certain influence on its cost dynamics.
Anticipated weak economic data from the oversees can weaken the U.S. currency, thereby contributing to the growth of the single European currency. The average selling rate of cash euro in Armenia this week will probably be within the 517 – 535 drams.
The average selling rate of cash Russian ruble past week declined by 0.35% to 13.09 drams due to depreciation of the Russian ruble against the U.S. dollar amid increasing concerns about the situation in Europe. The cost of the ruble against the U.S. dollar and, therefore, the dram this week will depend on macroeconomic data from the U.S. and the euro area, as well as on the dynamics of oil prices.
Continued uncertainty in the eurozone, and anticipated positive data from the USA could lead to a further decline of the ruble. However, if the economic data from the US is not very optimistic, and the data from the euro zone will be better than expected, the ruble may increase in value. The average selling rate of cash ruble in Armenia this week is likely to be 13.00 – 13.20 drams.
Mikael Verdyan analyst for GC FOREX CLUB, specially for ARKA
Views of the author may not coincide with those of ARKA
