Forex

Dollar Jumps to 7-Week High as June Fed Rate Hike Seen in Play

Published

7 years ago

May 18, 2016

The dollar rose to a seven-week high after Federal Reserve meeting minutes boosted speculation that the central bank will raise interest rates as soon as June.

The U.S. currency extended gains against most of its major peers after the release of policy makers’ deliberations indicated they are moving closer to further tightening after raising rates for the first time in a decade last December. Emerging-market currencies slumped on the prospect of higher U.S. interest rates, with the Brazilian real, South Africa’s rand and the Russian ruble pacing declines.

“The greenback should be bid here,” said Bipan Rai, executive director of foreign-exchange strategy at Canadian Imperial Bank of Commerce in Toronto. “The minutes suggest that the odds of a June hike or even a signal in June for a July hike are more likely than the market was prepared for.”

The greenback has advanced for the past two weeks in its longest run of gains since January as traders boosted expectations for the U.S. central bank to raise borrowing costs. The currency has pared its 2016 loss to 3 percent amid comments from regional Fed presidents that at least two rate increases this year may be warranted.

The Bloomberg Dollar Spot Index, which tracks the greenback versus 10 peers, climbed 0.8 percent as of 5 p.m. in New York, reaching the highest level on a closing basis since March 28. The U.S. currency added 0.9 percent to $1.1216 per euro and advanced 1 percent to 110.19 yen.

“This is really going to give the market some renewed confidence in the dollar,” said Lennon Sweeting, a corporate dealer in Toronto at the foreign-exchange transfer company USForex Inc. “We saw a couple of nice comments from the Fed, they recognize the fact that the market’s been wanting to hear a clear, concise message.”

Hedge funds reduced bets for the U.S. currency to weaken versus eight other currencies last week, according to the Commodity Futures Trading Commission. After surging more than 20 percent against the euro in the past two years, strategists project the dollar staying near its current level of $1.12 per euro through year-end.

The likelihood of the Fed raising rates at its June 14-15 meeting more than doubled from Tuesday to 32 percent, while the chances of a move by September rose to 62 percent from 47 percent the previous day, according to data based on fed fund futures compiled by Bloomberg.

Fed officials “have been building the case for a potential June hike over the past few weeks, with more hawkish undertones in their speeches,” said Minh Trang, a senior foreign-exchange trader at Silicon Valley Bank in Santa Clara, California. “They may not want to make the mistake of waiting too long, only to see the environment weaken and lose an opportunity to hike.”

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Black Market Rate

Dollar to Naira Exchange Rate Today March 30, 2023

Published

16 hours ago

March 30, 2023

Investors King

As of March 30, 2023, the dollar to naira exchange rate is 1 USD to 744 NGN at the black market. This means that for every one US dollar, you can exchange it for ₦744, Investors King reports.

This digital business news platform has obtained the official dollar to naira exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC) rate, and CBN rates.

This rate is subject to change depending on a variety of factors including global economic trends, political developments, and market fluctuations. However, you can buy and sell 1 USD at ₦744 and ₦740 as of the time of writing today.

What is the current exchange rate of the dollar to naira in the black market today?

According to Investors King, as of the time this report was filed, a dollar can be purchased at the Lagos parallel market (black market) for N744 and sold for N740.

Exchange Rate of Dollar To Naira in Black Market Today?

Dollar to Naira (USD to NGN)	Black Market Exchange Rate Today
Buying Rate	740
Selling Rate	744

Investors King understands that although the dollar to naira opened at N744 per $1 in the parallel market today, the Central Bank of Nigeria (CBN) does not acknowledge the parallel market, also referred to as the black market. The CBN has instructed individuals in need of forex to approach their bank as the I&E window is the sole recognized exchange.

On Thursday, March 30th, 2023, individuals in the black market purchased one US dollar for N740 and sold it for N744. This shows that the value of the Naira is largely unchanged compared to Wednesday, March 29th, 2023, when the local currency was exchanged at N738 and sold for N744.

To stay informed about the dollar to naira exchange rate, there are a number of reliable sources that you can turn to. Here are some tips for staying up-to-date:

Check the Central Bank of Nigeria’s website: The CBN is responsible for regulating the country’s monetary policy and is a reliable source for the latest exchange rates. You can check their website regularly for updates.
Follow financial news outlets: Financial news outlets such as Investors King, Bloomberg, Reuters, and CNBC provide regular updates on the global currency markets, including the dollar to naira exchange rate.
Use online currency converters: There are a number of online currency converters that allow you to quickly and easily check the exchange rate between the dollar and the naira.
Follow social media accounts of financial experts: Following social media accounts of financial experts such as analysts, economists, and financial advisors can give you valuable insights into the latest trends in the currency markets.

By staying informed about the dollar to naira exchange rate, you can make informed decisions when buying or selling foreign currencies. Whether you are a business owner looking to trade in foreign currencies or an individual looking to invest in the currency markets, knowledge of the latest exchange rates is key to success. Keep these tips in mind and stay informed about the latest trends in the global currency markets.

Black Market Rate

Dollar to Naira Exchange Rate Today March 29, 2023

Published

2 days ago

March 29, 2023

Investors King

As of March 29, 2023, the dollar to naira exchange rate is 1 USD to 744 NGN at the black market. This means that for every one US dollar, you can exchange it for ₦744, Investors King reports.

This digital business news platform has obtained the official dollar to naira exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC) rate, and CBN rates.

What is the current exchange rate of the dollar to naira in the black market today?

According to Investors King, as of the time this report was filed, a dollar can be purchased at the Lagos parallel market (black market) for N744 and sold for N738.

Exchange Rate of Dollar To Naira in Black Market Today?

Dollar to Naira (USD to NGN)	Black Market Exchange Rate Today
Buying Rate	738
Selling Rate	744

On Wednesday, March 29th, 2023, individuals in the black market purchased one US dollar for N738 and sold it for N744. This shows that the value of the Naira has improved slightly compared to Tuesday, March 28th, 2023, when the local currency was exchanged at N739 and sold for N745.

To stay informed about the dollar to naira exchange rate, there are a number of reliable sources that you can turn to. Here are some tips for staying up-to-date:

Check the Central Bank of Nigeria’s website: The CBN is responsible for regulating the country’s monetary policy and is a reliable source for the latest exchange rates. You can check their website regularly for updates.
Follow financial news outlets: Financial news outlets such as Investors King, Bloomberg, Reuters, and CNBC provide regular updates on the global currency markets, including the dollar to naira exchange rate.
Use online currency converters: There are a number of online currency converters that allow you to quickly and easily check the exchange rate between the dollar and the naira.
Follow social media accounts of financial experts: Following social media accounts of financial experts such as analysts, economists, and financial advisors can give you valuable insights into the latest trends in the currency markets.

Naira

Nigeria’s Naira-Dollar Exchange Rate Stabilizes Despite Cash Crunch

Published

2 days ago

March 28, 2023

Samed Olukoya

Despite a cash crunch and growing demand pressure, Nigeria’s Naira-dollar exchange rate has remained relatively stable across official and parallel foreign exchange markets.

The Naira has been trading at around N461 to N462 per dollar since the beginning of the year at the Investors and Exporters forex window, which is Nigeria’s official foreign exchange market. Meanwhile, at the parallel market or black market, the Naira has been trading at around N750 to N765 per dollar.

Most currency dealers who participated in Monday’s foreign exchange market auction maintained bids between N460.00 (low) and N462.43 (high) per dollar. Although the Naira has depreciated by 0.04 percent on a day-to-day trading basis, the dollar’s price has remained stable at N461.50.

At the open market last week, the Naira edged out the United States dollar, appreciating by N5 or 0.7 percent week-on-week to close at N746/USD from N751/USD in the previous week. However, the scarcity crunch continues to bite harder, causing dollar demand to take a calm in the face of scarcity.

Nigeria’s external reserves, which give the Central Bank of Nigeria (CBN) the firepower to defend the Naira, have declined to $35.74 billion as of March 24, 2023, but picked up to $36.67 billion as of Tuesday.

Despite these challenges, Bismarck Rewane, Managing Director/Chief Executive Officer of Financial Derivatives Company Limited, predicts that the Naira will strengthen to N680 per dollar this year.

Analysts at Cowry Asset Asset are predicting range-bound price action across the foreign exchange market this week.

They said, “We expect the naira to trade in a relatively calm band across various market segments this week, barring any market distortion in the face of the Naira scarcity and as the apex bank continues its weekly FX market intervention to defend the value of the naira.”