Connect with us

Forex

Dollar Boosted by Hawkish Fed Comments as Oil Drops With Gold

Published

on

Dollar to Naira Exchange Rate - Investors King

The dollar strengthened versus all of its major peers as hawkish comments from a Federal Reserve official boosted the likelihood of a U.S. interest-rate increase this year. The yen’s retreat was spurred by prospects for further monetary easing in Japan, while oil dropped with gold.

Dollar index rose to a one-week high after Fed Vice Chairman Stanley Fischer said Sunday the U.S. economy is already close to meeting the central bank’s goals and that growth will pick up. The yen fell for a second day and Japanese stocks advanced after Bank of Japan Governor Haruhiko Kuroda flagged the possibility that the authority’s unprecedented monetary stimulus will be added to in September. Elsewhere in Asia, most shares declined as oil fell to about $48 a barrel. Silver led losses among precious metals.

Global markets have been buffeted by comments from Fed officials flagging the possibility of higher borrowing costs as early as next month, even though minutes of the central bank’s last meeting struck a more dovish tone. The focus will shift to Janet Yellen’s speech this week in Jackson Hole, Wyoming, where top global central bankers will gather for a meeting. Futures traders on Friday assigned a 22 percent probability to a September rate increase by the Fed, up from 16 percent a week earlier.

“Janet Yellen’s speech on Friday will have the biggest impact on short-term market moves, especially if she follows in Stanley Fischer’s relatively hawkish tone,” said Angus Nicholson, a market analyst at IG Ltd. “A week of talking up the U.S. dollar will be good for U.S. financial stocks that would benefit from a rate rise and some of that positivity could spread over into financials globally.”

Currencies

Dollar Spot Index rose 0.4 percent as of 11:16 a.m. Tokyo time, after losing ground in each of the last two weeks. South Korea’s won fell 0.8 percent versus the greenback and New Zealand’s dollar lost 0.7 percent, the biggest declines among 16 major currencies.

“We expect the dollar to consolidate this week with a modest upside bias,” said Elias Haddad, a senior currency strategist at Commonwealth Bank of Australia in Sydney. “There is room for U.S. interest-rate expectations to adjust a bit higher this week.”

The yen dropped 0.5 percent to 100.73 per dollar. Kuroda told the Sankei newspaper that the BOJ is conducting a comprehensive review of Japan’s economy and finances and said there is “sufficient chance” of more easing at next month’s policy meeting. Softer July inflation data this Friday may raise odds for more aggressive BOJ easing, Haddad said.

Forwards on India’s rupee were little changed after India named Urjit Patel to take over from Raghuram Rajan as central bank governor from Sept. 4.

Stocks

Japan’s Topix index added 0.5 percent as the yen’s decline boosted exporters including Toyota Motor Corp., which was headed for its highest close since March.

About three stocks fell for every two that rose on the MSCI Asia Pacific excluding Japan Index, with raw-materials producers leading losses among 10 industry groups. South Korea’s Kospi index slipped from a 13-month high as foreign investors pulled funds from the securities for the first time in a week, while Taiwan’s benchmark was set for its lowest close in a month. Hong Kong’s Hang Seng Index rose 0.1 percent, after retreating from a nine-month high on Friday.

Futures for the S&P 500 Index fell 0.1 percent after the gauge ended last week within 0.3 percent of an all-time high. Pfizer Inc. is close to an agreement to buy Medivation Inc. for about $14 billion and a deal may be announced as early as Monday, according to people familiar with the situation.

Commodities

Crude oil declined 1.1 percent to $48.01 a barrel in New York after Iraq, OPEC’s second-biggest producer, said it will boost exports by about 5 percent amid a glut of supply. The price jumped 9.1 percent last week on speculation that OPEC talks next month could lead to an output freeze. U.S. drillers added rigs for an eighth week, the longest run since April 2014, Baker Hughes Inc. data show.

Silver dropped as much as 3 percent to a seven-week low, while gold was down 0.6 percent amid the dollar’s advance. Silver has rallied 37 percent this year while gold jumped 26 percent as the Fed refrained from tightening and other central banks embraced negative rates, benefiting bullion which doesn’t pay interest.

Bonds

U.S. Treasuries due in a decade fell, pushing their yield up by one basis point to 1.59 percent. The yield could climb toward 1.70 percent if Yellen’s remarks are along the lines of those made by Fischer when she delivers her address on Friday, according to Su-Lin Ong, a senior economist at Royal Bank of Canada in Sydney.

“The market is clearly susceptible to Yellen making similar comments in Jackson Hole,” Ong said. “The most recent lot of Fed speakers — and these are key speakers — have signaled that the market should be putting a greater weight on the risk of a move before year-end.”

Australia’s 10-year bond yield increased by five basis points to 1.91 percent and Japan’s rose by one basis point to minus 0.08 percent.

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.

Continue Reading
Comments

Naira

Naira Exchange Rate Dips at Official Market and Black Market

Published

on

Naira - Investors King

The Nigerian Naira opened the week lower against the United States Dollar at the Investors and Exporters (I&E) foreign exchange window now adopted as the official forex window and also at the black market.

The local currency opened at N417.30 against the United States Dollar before declining by 0.60% to close the day at N421.50/$ at the I&E window. Forex traders at the window transacted forex worth $70.68 million on Monday.

For banks and international money transfer operators, the Central Bank of Nigeria buys US Dollars at N414.75 and sells at N415.75. The apex bank buys and sells Pounds Sterling N508.2761 and N509.5016, respectively. For the European common currency, the Euro, the central bank sold it at N433.0453 and acquired it at N432.0036 a unit.

At the parallel market popularly known as the black market, the Naira was exchanged at N599 for a United States Dollar in Abuja.

Speaking on why the exchange rate is that high, Abu Abdullahi, a currency trader at Zone 4 in Abuja, said demand for the U.S. Dollar is high despite persistent scarcity.

Crude Oil

Crude oil extended its gain in the early hours of Tuesday on optimism that China, the world’s largest importer of the commodity, would see substantial demand recovery after the latest data pointed to slowing COVID-19 infections in the hardest-hit areas.

Brent crude oil, the international benchmark for Nigerian crude oil, gained $2.69, or 2.4% to $114.24 a barrel at 5 am Nigerian time. The U.S. West Texas Intermediate (WTI) crude rose $3.71, or 3.4%, to $114.20 a barrel, Investors King understands.

“We are seeing a lot of signals that demand will start returning in that region, supporting higher prices,” said Bob Yawger, director of energy futures at Mizuho.

Cryptocurrency

Finally, Bitcoin and other cryptocurrencies shake off Luna-led decline to pare losses on Tuesday. Luna Foundation Guard (LFG) announced in the late hours of Monday that it was discontinuing Luna Coin and stablecoin (UST) operations to launch a new blockchain protocol that would focus on developers and building in general.

The announcement marked the end of one of the most promising cryptocurrency projects and once again reminds the world of how vulnerable the cryptocurrency space is — regardless of what creators say.

Bitcoin gained 1.99% to $30,366 per coin while Eth, a token of Ethereum, XRP (token of Ripple) and Solana appreciated by 3.15%, 3.25% and 4.39% to close at $2,084.27, $0.431744 and $55.86, respectively.

Continue Reading

Naira

Black Market: Dollar to Naira Exchange Rate Remains Under Pressure

1 dollar to naira today on the black market was N585 and purchased at N590 in Ibadan and Lagos

Published

on

Naira Exchange Rates - Investors King

The Nigerian Naira remained under pressure against global counterparts in the Nigerian unregulated parallel market, popularly known as the black market. $1 dollar to naira today on the black market was N585 and purchased at N590 in Ibadan and Lagos.

At the Investors and Exporters’ forex window, the Dollar to Naira exchange rate dipped by 0.24% to N419 from N417.70 it exchanged on Thursday.

For the interbank market, Investors King observed that the Nigerian Naira remained largely unchanged at N415.74 against the U.S. Dollar.

Cryptocurrency

Bitcoin to Naira exchange rate remained subdued as the uncertainty surrounding the cryptocurrency space surged to a  record-high following about a 99% plunge in the value of Terra Luna Coin and its stablecoin, UST.

Bitcoin to Naira exchange rate dropped by 1.49% in the last 24 hours to N17.859 million. While Eth, a token of the Ethereum protocol dipped by 0.34% to N1.232 million, down from about N2 million it traded a few weeks ago.

The uncertainty in the cryptocurrency space also dragged on the Binance coin (BNB) as the coin of the world’s leading cryptocurrency exchange platform moderated to N179,834 a coin, a 0.50% decline in its value.

Luna, the cryptocurrency that once again alerted the world to the vulnerability of unregulated space, is presently trading at N0.120 per coin, down from about N57,000 it was trading a week ago.

Crude Oil

Oil prices fell on Monday as the uncertainty surrounding China, the world’s second-largest economy,  continues to drag on the commodity outlook.

Brent crude, the benchmark for Nigerian crude oil dipped by 0.7%, or 72 cents to $110.83 per barrel at 11:45 am on Monday. While the U.S. West Texas Intermediate (WTI) oil fell by 0.5%, or 58 cents to $109.91 a barrel.

The decline was a result of the prolonged COVID-19 lockdown in china. China, the world’s largest importer of crude oil, is said to have instituted lockdown restrictions in about 46 cities to curb the spreading COVID-19.

However, this lockdown has started disrupting China’s economic activity as retail sales contracted by 11% while factory production dropped by 2.9% in the month of April.

Experts are now predicting that despite Russia’s sanction, crude oil prices could drop further if the Chinese lockdown persists.

 

Continue Reading

eNaira

Africa, World to Enjoy More Payment Satisfaction Through eNaira – CBN says

The Central Bank of Nigeria (CBN) has said the adoption of its Central Bank Digital Currency (CBDC) known as eNaira will deepen financial inclusion

Published

on

The Central Bank of Nigeria (CBN) has said the adoption of its Central Bank Digital Currency (CBDC) known as eNaira will deepen financial inclusion, ease the nation’s payment bottleneck and support transborder transactions across Africa and beyond.

Godwin Emefile, the governor of the apex bank disclosed this on Monday while receiving Bank of Uganda delegates, who were on an experience sharing tour of the Central Bank Digital Currency (CBDC), in Abuja.

He said, “the CBDC would enhance the relationship between mobile banking and e-business and speed up the rate of financial inclusion.”

“The eNaira, being the first of its kind for a large country like Nigeria, was attracting the interests of many countries, Uganda inclusive.

“We’ve been receiving enquiries from various Central Banks in different parts of Africa and the world, trying to understand what we are doing in the area of CBDC. We are happy that the IMF and World Bank have recognised what we are doing in the area of CBDC.

“However, the country has deepened its payment system infrastructure, and is ranked among the best in the world.”

What it is

Earlier in October 2021, Investors king reported that the Central Bank of Nigeria launched the eNaira, after over 20 days of supposed launch.

The eNaira is a Central Bank Digital Currency backed by law and issued by the CBN as a legal tender. It is the digital form of the Naira used as cash.

The Digital currency was introduced to provide high‐value and time‐critical payment services to financial institutions, and ultimately serves as the backbone for every electronic payment in Nigeria,” President Muhammadu Buhari said.

Nigeria became the first country in Africa and one of the first in the world to introduce a digital currency to our citizens, according to Investors king.

 

Continue Reading




Advertisement
Advertisement
Advertisement

Trending