Forex

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

Published

8 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, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Naira

Black Market Dollar to Naira Exchange Rate Today 17th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Published

1 day ago

May 17, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,560 and sold it at ₦1,550 on Thursday, May 16th, 2024.

This indicates a slight improvement in the Naira exchange rate when compared to today’s rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.

How much is dollar to naira today in the black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

Buying Rate: ₦1,540
Selling Rate: ₦1,530

As economic conditions continue to evolve, staying informed about currency exchange rates empowers individuals to make informed financial decisions. While the black market provides immediate insights, adherence to regulatory guidelines ensures stability and transparency in forex transactions.

Forex

SEC and ABCON Explore Collaboration for ‘Kolectyomoni’ Digital Currency Platform

Published

1 day ago

May 17, 2024

Samed Olukoya

The Association of Bureaux De Change Operators of Nigeria (ABCON) has initiated talks with the Securities and Exchange Commission (SEC) to explore collaboration on its upcoming digital currency market platform, ‘Kolectyomoni’.

This move was underscored during an official visit by ABCON representatives to the newly appointed Director General of the SEC, Dr. Timi Agama. Aminu Gwadabe, President of ABCON, conveyed the association’s eagerness to engage with SEC to ensure the smooth operation of its digital currency platform.

Gwadabe emphasized that ABCON recognizes the regulatory oversight of SEC in the financial sector and seeks its guidance to navigate the complexities of the digital currency market.

He pointed out that while digital currencies hold immense potential for financial inclusion and innovation, they also present regulatory challenges that require collaborative efforts between industry stakeholders and regulatory bodies.

Highlighting the significance of embracing digital currencies, Gwadabe noted, “The future of BDC’s business is digital currency.”

He stressed the growing adoption of digital currencies among Nigerians, citing statistics that reveal a rising number of participants in the digital currency ecosystem, with a substantial market size of $9 billion annually.

In response, Dr. Timi Agama expressed SEC’s openness to support and facilitate the growth of the digital currency sector in Nigeria.

He acknowledged ABCON’s initiative in launching the ‘Kolectyomoni’ platform and assured of SEC’s cooperation in providing regulatory guidance and oversight.

Agama reaffirmed SEC’s commitment to fostering innovation in the financial sector while ensuring investor protection and market integrity.

He underscored the importance of collaboration between regulators and industry players to develop robust frameworks that foster innovation and safeguard against potential risks.

Furthermore, Agama encouraged ABCON to finalize the development of the ‘Kolectyomoni’ digital currency platform and submit it to the SEC for thorough review and assessment by the technical team.

He emphasized the need for timely regulatory oversight to address emerging trends in the digital currency market and maintain regulatory compliance.

Naira

Black Market Dollar to Naira Exchange Rate Today 16th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Published

2 days ago

May 16, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,530 and sold it at ₦1,520 on Wednesday, May 15th, 2024.

This indicates a decline in the Naira exchange rate compared to the current rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.