Forex

Dollar Drops on Yellen Comments, China Shares Rise

Published

7 years ago

January 20, 2017

Dollar Drops on Yellen Comments, China Shares Rise

The dollar weakened after Janet Yellen said it’s prudent for the Federal Reserve to gradually adjust policy over time, while Chinese equities extended gains as the world’s second-largest economy grew faster than forecast. Gold climbed for a second day.

The greenback slipped against major peers after the Fed chief’s speech. The Shanghai Composite Index rose the most in almost two weeks as China’s gross domestic product accelerated for the first time in two years in the final quarter of 2016. Japan’s Topix index swung within a half-percentage-point range, while equities from Hong Kong to Jakarta slipped. Gold headed for a fourth straight weekly advance as investors await the opening days of Donald Trump’s presidency.

Rallies in the dollar and equities are easing this week before Trump is sworn in as the 45th American president, with investors growing increasingly anxious for indications the administration will follow through on pro-growth campaign promises. Legendary billionaire investor George Soros said the euphoria among stock investors since Trump’s victory will end as uncertainty takes over. The Dow Jones Industrial Average has churned in its tightest range ever over the past month.

“It’s clear that investors have reached a level where they are prepared to wait and see what the Trump administration has to offer,” said Ric Spooner, chief market analyst at CMC Markets Asia Pacific Ltd. in Sydney.

In a speech at the Stanford Institute for Economic Policy just a day before Trump’s inauguration in the U.S., Yellen argued that the Fed wasn’t behind the curve in containing inflation pressures but nevertheless can’t afford to allow the economy to run too hot. In a separate speech on Wednesday, Yellen said the Fed was close to achieving its goals of full employment and stable prices. The odds of another Fed rate hike as soon as May have risen to 50 percent from 42 percent a day ago, futures contracts show.

China’s economic data cemented an economic stabilization that’s giving leaders a buffer as they transition to neutral policy and prepare for potential trade tensions with Trump. GDP increased 6.8 percent in the three months through December from a year earlier, compared with a 6.7 percent median estimate in a Bloomberg survey.

Here are the main moves in markets:

Currencies

The Bloomberg Dollar Spot Index retreated 0.3 percent as of 12:41 p.m. in Tokyo, after gaining as much as 0.1 percent earlier. The gauge is down 0.2 percent for the past five days, heading toward its fourth straight weekly loss. It touched the highest level in more than a decade earlier this month.
The yen added 0.2 percent to 114.60 per dollar, wiping out a decline of 0.2 percent and almost reversing a loss for the week. The Australian dollar climbed 0.3 percent, also erasing earlier losses.

Stocks

The MSCI Asia Pacific Index rose 0.3 percent, with about 500 stocks declining and 360 advancing.
The Topix index fell as much as 0.2 percent and climbed as much as 0.3 percent. The gauge is headed for its fourth weekly decline in the past five weeks.
The Shanghai Composite gained 0.5 percent. Hong Kong’s Hang Seng index fell 0.7 percent.
Australia’s S&P/ASX 200 Index slipped 0.5 percent, heading toward the biggest weekly decline since early December.
Futures on the S&P 500 Index rose 0.1 percent. The underlying cash index fell 0.4 percent to the lowest in two weeks on Thursday. The Dow declined for a fifth straight day, the longest losing streak since Trump’s election victory.

Commodities

Gold rose 0.3 percent to $1,208.09 an ounce, on course for a fourth weekly climb. It’s up 0.9 percent this week, touching the highest level since November.

Bonds

The yield on 10-year Treasuries fell two basis points to 2.45 percent, retreating after a two-day rally.

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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 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

23 hours 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

2 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.

Naira

Dollar to Naira Black Market Today, April 18th, 2024

As of April 18th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,020 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

2 days ago

April 18, 2024

Samed Olukoya

As of April 18th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,020 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 N1,050 and sell it at N1,040 on Wednesday, April 17th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate improved 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.