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Yen Extends Gains as Stock Rally Fades After Fed

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  • Yen Extends Gains as Stock Rally Fades After Fed

The yen extended gains and a stock rally fizzled as traders in Asia digested minutes from the Federal Reserve’s December meeting. Crude oil maintained an advance.

Japan’s currency rose 0.5 percent against the dollar and the Bloomberg Dollar Index retreated for a second day. Equity indexes in Japan swung between gains and losses, while Australian shares advanced and South Korea’s Kospi index dropped. The S&P 500 Index rose a second day overnight and the greenback fell as the Fed minutes highlighted concerns about the impact of a strong currency on the new U.S. administration’s stimulatory economic policies.

Uncertainty over the path of U.S. fiscal policy weighed heavily on the Fed’s discussion of the economy and the path of monetary policy when it decided to lift rates last month, minutes from that meeting showed. Despite growing attention to the risks of fiscal policy spurring faster growth than currently forecast, most on the committee reiterated that a “gradual” pace of rate hikes over the coming years would likely remain appropriate. Stocks have rallied with the dollar, while Treasuries have plunged since Trump’s election.

“Stop-loss orders were probably taken out after dollar-yen broke 117,” said Shigeki Yoshitoshi, head of Japan foreign-exchange and commodities sales at Australia & New Zealand Bank Group Ltd. in Tokyo. “Along with the caution about a strong dollar in the FOMC minutes, the tone wasn’t as hawkish as I expected.”

Stocks

  • The MSCI Asia Pacific Index rose 0.6 percent as of 10 a.m. in Tokyo. The Topix index added 0.1 percent and Australia’s S&P/ASX 200 Index advanced 0.3 percent. South Korea’s Kospi index slid 0.1 percent and New Zealand’s S&P/NZX 50 Index lost 0.2 percent.
  • Futures on the S&P 500 fell 0.1 percent after the underlying gauge rose 0.6 percent in New York. The Dow Jones Industrial Average resumed its pursuit of 20,000, rising to 19,942.16.
  • The Stoxx Europe 600 Index fell 0.1 percent to halt a three-day advance that took the measure into a bull market.

Currencies

  • The Bloomberg Dollar Index extended losses, declining 0.3 percent, after touching its highest level since its 2004 inception on Wednesday. The measure has jumped 1.7 percent since Dec. 13.
  • The yen rose 0.5 percent to 116.66 per dollar after rising 0.4 percent the previous session. South Korea’s won jumped 1.2 percent, the most since September.
  • The euro climbed 0.4 percent to $1.0533 after jumping 0.8 percent in its first gain against the dollar this year, after the region’s inflation accelerated in December to the fastest pace since 2013.

Commodities

  • Crude oil futures were little changed after Wednesday’s 1.8 percent advance. U.S. crude inventories were projected to have declined while OPEC and other producers implement promised production cuts.
  • Gold rose 0.7 percent in early trading.

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 13th June 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of June 13th, 2024 stood at 1 USD to ₦1,490.

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NAIRA - Investors King

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of June 13th, 2024 stood at 1 USD to ₦1,490.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,480 and sold it at ₦1,470 on Wednesday, June 12th, 2024.

This indicates a slight decline in the Naira exchange rate value 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: ₦1,490
  • Selling Rate: ₦1,480

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.

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Naira

Black Market Dollar to Naira Exchange Rate Today 12th June 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of June 12th, 2024 stood at 1 USD to ₦1,480.

Published

on

Naira to Dollar Exchange- Investors King Rate - Investors King

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of June 12th, 2024 stood at 1 USD to ₦1,480.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,500 and sold it at ₦1,490 on Thursday, June 6th, 2024.

This indicates an improvement in the Naira exchange rate value 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: ₦1,480
  • Selling Rate: ₦1,470

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.

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Forex

Cedi Falls to Record Low Due to Increased Dollar Demand from Importers

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The Ghanaian cedi has plummeted to a record low of 14.9335 per dollar as the increase in demand for US dollars by companies importing fuel, pharmaceuticals, and other fast-moving consumer goods put pressure on the currency.

This depreciation, observed by the close of trading in Accra, marks the cedi’s lowest level since at least 1994 when Bloomberg began tracking the data.

Since the start of the year, the cedi has declined by 20% against the US dollar, ranking it as the fourth-worst performing currency among approximately 150 tracked globally by Bloomberg, following the Egyptian pound, Nigerian naira, and Lebanese pound.

“Dollar demand from oil importers, the pharmaceuticals industry, and FMCG companies remains strong,” noted Samantha Singh-Jami, Africa Strategist at Rand Merchant Bank. “Although authorities have significantly increased foreign exchange reserves in recent months, there are still constraints on foreign exchange liquidity in the market.”

Ghana’s gross international reserves rose to $6.6 billion in April, the highest in over 19 months, as per data compiled by Bloomberg.

The central bank has been strategically managing these reserves to ensure sufficient market supply, including directly addressing some companies’ foreign exchange needs to alleviate the pressure on commercial banks.

This increase in reserves follows Ghana’s decision to halt servicing most of its external debt since December 2022.

The move was part of a debt restructuring effort to qualify for an International Monetary Fund (IMF) program. Disbursements from the $3 billion IMF package and inflows from other multilateral and bilateral sources have bolstered the reserves.

However, the cedi’s decline is also attributed to a significant drop in cocoa export revenue, which has diminished foreign exchange supply. Revenue from cocoa shipments fell by 49% to $599 million from January through April.

The country’s cocoa output for the 2023-24 season is projected to be between 422,500 and 425,000 tons, which is only half of the initial estimate.

“The weakening of the cedi seems to reflect foreign exchange flow mismatches,” said Samir Gadio, head of Africa Strategy at Standard Chartered Bank. “Foreign exchange demand recovered this year, though it has remained broadly constant in recent months, and continues to exceed supply.”

The combination of high demand for dollars by importers and reduced foreign exchange inflows has created a challenging environment for the cedi.

Despite efforts by the central bank to manage the situation, the currency continues to struggle under the weight of these economic pressures.

Economic Outlook

The Ghanaian government and central bank face a tough task in stabilizing the cedi amidst these challenges.

Ensuring adequate foreign exchange liquidity while addressing the structural issues in the economy, such as reliance on imports and fluctuating export revenues, will be crucial in reversing the cedi’s downward trend.

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