Forex

Dollar Rises on U.S. Rate Speculation

Published

8 years ago

October 5, 2016

Bureau Of Engraving And Printing Prints New Anti-Counterfeit 100 Dollar Bills

Dollar Rises on U.S. Rate Speculation

The dollar climbed for a seventh day against the yen and held near a two-week high versus its major peers as economic data and comments from Federal Reserve officials revived speculation about an interest-rate increase in 2016.

The U.S. currency posted its longest winning streak versus its Japanese counterpart since March. Key jobs numbers at the end of this week are forecast to show a pickup in hiring in the world’s largest economy, while Fed Bank of Chicago President Charles Evans told reporters in Auckland today that one rate increase by year-end is likely if data continue to improve.

An index of the U.S. currency jumped the most since mid-September on Tuesday after fellow official Jeffrey Lacker urged the central bank to tighten policy to stem a likely uptick in inflation.

“The dollar remains supported by expectations of a Fed rate hike,” said Viraj Patel, a London-based foreign-exchange strategist at ING Groep NV. “Fed talk has been relentlessly hawkish in the past couple of weeks, so much so it’s been hard for markets to ignore. Markets are now looking for the data to validate this.”

The yen slipped 0.2 percent to 103.12 per dollar as of 6:40 a.m. New York time in its seventh day of losses, while the euro rose 0.2 percent to $1.1224.

The Bloomberg Dollar Spot Index, which measures the currency against 10 major peers, was little changed as of 10:35 a.m. in London, a day after it climbed 0.6 percent to the highest on a closing basis since Sept. 20.

‘Compelling’ Case

Evans, who’s not a voting member on the Federal Open Market Committee until next year, said the U.S. central bank may raise the benchmark interest rate as soon as next month. Fed Bank of Cleveland President Loretta Mester said Monday that the case for an increase is “compelling.”

Traders will get more clues on the likely path of U.S. rates later in the day when reports on employment, manufacturing and services are released. The probability of a hike by December rose to 61 percent, from 51 percent at the start of last week.

“Those who had become doubtful of a rate increase this year are now paring their bearish view somewhat,” said Takao Hattori, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities Co. in Tokyo.

“It seems clear the Fed wants to lift rates before the end of this year.”

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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

Dollar to Naira Black Market Today, April 22nd, 2024

As of April 22nd, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,290 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

1 day ago

April 22, 2024

Samed Olukoya

As of April 22nd, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,290 NGN in the black market, also referred to as the parallel market or Aboki fx.

For those engaging in currency transactions in the Lagos Parallel Market (Black Market), buyers purchase a dollar for N1,100 and sell it at N1,090 on Friday, April 19th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined when compared to today’s rate below.

This black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

How Much is Dollar to Naira Today in the Black Market?

Kindly be aware that the Central Bank of Nigeria (CBN) does not acknowledge the existence of the parallel market, commonly referred to as the black market.

The CBN has advised individuals seeking to participate in Forex transactions to utilize official banking channels.

Black Market Dollar to Naira Exchange Rate

Buying Rate: N1,290
Selling Rate: N1,280

Naira

Dollar to Naira Black Market Today, April 19th, 2024

As of April 19th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,100 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

4 days ago

April 19, 2024

Samed Olukoya

As of April 19th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,100 NGN in the black market, also referred to as the parallel market or Aboki fx.

For those engaging in currency transactions in the Lagos Parallel Market (Black Market), buyers purchase a dollar for N1,020 and sell it at N1,010 on Thursday, April 18th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined slightly when compared to today’s rate below.

This black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

How Much is Dollar to Naira Today in the Black Market?

Kindly be aware that the Central Bank of Nigeria (CBN) does not acknowledge the existence of the parallel market, commonly referred to as the black market.

The CBN has advised individuals seeking to participate in Forex transactions to utilize official banking channels.

Black Market Dollar to Naira Exchange Rate

Buying Rate: N1,100
Selling Rate: N1,090

Naira

Naira’s Recent Gain Reflects Policy Direction, Says CBN Chief Olayemi Cardoso

Published

5 days ago

April 18, 2024

Samed Olukoya

Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has explained that the recent surge in the Naira is a testament to the positive direction of government policies rather than active intervention to defend the currency’s value.

Addressing attendees at the spring meetings of the International Monetary Fund and World Bank in Washington, Governor Cardoso underscored that the CBN’s intention is not to artificially prop up the Naira.

He clarified that the fluctuations observed in the country’s foreign exchange reserves were not aimed at defending the currency but rather aligning with broader economic goals.

Over the past month, the Naira has experienced a notable uptick in value against the dollar, signaling a reversal from previous declines. Data from Bloomberg reveals a 6.4% decrease in liquid reserves since March 18, coinciding with the Naira’s rebound.

Despite this decline, Cardoso pointed out that around $600 million had flowed into the reserves in the past two days, reflecting confidence in the Nigerian market.

Governor Cardoso articulated the CBN’s vision of a market-driven exchange rate system, emphasizing the importance of allowing market forces to determine exchange rates through willing buyers and sellers.

He expressed optimism about a future where the central bank’s intervention in the foreign exchange market would be minimal, except in extraordinary circumstances.

The recent resilience of the Naira follows a period of volatility earlier in the year, marked by a substantial devaluation in January. Since then, the CBN has implemented measures to stabilize the currency, including monetary tightening and initiatives to enhance dollar liquidity.

Cardoso highlighted the transformation in market sentiment, noting that investors now perceive Nigeria’s central bank as committed to stabilizing inflation and fostering economic stability.

As Nigeria continues its journey toward economic recovery and stability, Cardoso’s remarks provide insight into the central bank’s strategy and its impact on the country’s currency dynamics.