Connect with us

Forex

Yen Extends Slump on BOJ Move; Japanese Shares Gain

Published

on

aussie
  • Yen Extends Slump on BOJ Move; Japanese Shares Gain

The yen extended the biggest decline in a week and Japanese bonds rose as the nation’s central bank stepped in to buy debt. Japanese shares gained in a day of thin trading across Asia with a slew of markets closed for Lunar New Year celebrations.

The yen dropped for a second day as the BOJ’s move signaled it won’t let 10-year yields rise. The Topix Index rose to within a few points of the highest since December 2015, while Australian shares also climbed. The S&P 500 Index slipped Thursday from an all-time high, while the Dow Jones Industrial Average notched another record. Oil traded above $53 a barrel, while gold was heading for its longest slump in three months.

Signs U.S. expansion remained on uneven footing emerged Thursday, as data showed rising bond yields damped home purchases last month, while jobless claims rose more than forecast. Japanese consumer prices dropped for a 10th straight month, though the pace of declines eased, supporting expectations for a return to inflation later this year.

Markets in China, South Korea, Taiwan and Vietnam will be closed Friday for the start of Lunar New Year. Hong Kong, Malaysia and Singapore will have shortened sessions.

Here are the main moves in markets:

Stocks

  • The Topix rose 0.4 percent as of 11:30 a.m. in Tokyo.
  • Australia’s S&P/ASX 200 Index rose 0.6 percent as the nation’s markets reopened after being closed Thursday for a national holiday. Hong Kong’s Hang Seng Index slipped 0.1 percent, while Singapore’s Straits Times Index added 0.2 percent.
  • The S&P 500 Index slipped 0.1 percent at 2,296.68 on Thursday in New York, after the measure rose past 2,300 for the first time.

Currencies 

  • The yen slid 0.3 percent to 114.89 per dollar, after dropping 1.1 percent the previous session.
  • The Bloomberg Dollar Spot Index added 0.1 percent. It jumped 0.6 percent on Thursday. The measure is headed for a fifth straight weekly decline — the longest stretch since May 2015 — after rising to the highest in more than a decade.
  • The peso dropped 0.5 percent to 21.3179 per dollar, extending Thursday’s 0.7 percent retreat as Mexico’s president canceled a meeting with Donald Trump.

Bonds

  • Japanese 10-year yields fell two basis points to 0.07 percent after the BOJ boosted the amount of 5-to-10-year bonds it buys in its outright purchase operations.
  • Australian 10-year yields jumped six basis points to 2.79 percent, while those on similar-dated New Zealand debt advanced four basis points to 3.40 percent.
  • The yield on 10-year Treasuries was up one basis point to 2.51 percent. It had slipped one basis point on Thursday after an auction of $28 billion in seven-year notes drew a record amount of buying from indirect bidders, signaling interest from foreign central banks and mutual funds.

Commodities

  • Gold retreated 0.2 percent to $1,186.25 an ounce, after dropping 1 percent in New York. It was headed for its fourth straight loss, which would be the longest slump since October.
  • West Texas Intermediate crude was at $53.85 a barrel after surging 2 percent to an almost three-week high as optimism increased OPEC and other producing nations would adhere to their pledged output cuts.

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.

Continue Reading
Comments

Naira

Nigeria Hits Historic High as Currency in Circulation Surges to N3.69 Trillion

Published

on

naira

Nigeria’s currency in circulation surged to a historic high of N3.69 trillion, according to data released by the Central Bank of Nigeria (CBN).

This figure represents an increase of N43.07 billion or 1.18 percent from the total of N3.65 trillion reported in January 2024 and a 13.64 percent year-on-year rise from N3.25 trillion reported in February 2023.

Currency in circulation encompasses the physical cash, including paper notes and coins, actively used in transactions between consumers and businesses within the country.

The latest statistics indicate a considerable uptick in the availability of cash within the Nigerian economy.

The surge in currency supply comes amidst lingering concerns over a potential cash crunch following the monetary policy adjustments by the CBN, particularly the aggressive tightening stance of the Monetary Policy Committee (MPC).

Analysts attribute this spike to various factors, including the fear factor stemming from the cash crunch experienced in 2023 and lingering uncertainties surrounding the administration of physical currency.

Despite the surge in currency in circulation, Nigeria’s economic growth remains sluggish, with projections indicating growth rates of around 2.9 percent to 3.1 percent for 2024.

Also, inflation remains a significant concern, with the headline inflation rate climbing to 31.70 percent in February 2024 from 29.9 percent reported in January 2024, according to data from the National Bureau of Statistics (NBS).

The CBN’s proactive approach to monetary policy, including a historic increase in the monetary policy rate (MPR) to 24.75 percent, underscores the central bank’s commitment to addressing economic challenges and fostering stability amidst persistent pressures.

Continue Reading

Naira

Nigerian Naira Surges to N1,350 per Dollar in Parallel Market

Published

on

New Naira notes

The Nigerian Naira has appreciated to N1,350 per dollar in the parallel market, a significant gain from its previous rate of N1,430 per dollar just a day earlier.

Similarly, in the Nigerian Foreign Exchange Market (NAFEM), the naira strengthened to N1,382.95 per dollar, indicating an upward trend across key forex segments.

Data from FMDQ revealed that the indicative exchange rate for NAFEM fell to N1,382.95 per dollar from N1,408.04 per dollar on the previous day, representing a gain of N25.09 for the naira.

This surge in the naira’s value has widened the margin between the parallel market rate and NAFEM to N32.95 per dollar from N21.96 per dollar previously.

Analysts attribute this impressive surge to recent foreign exchange reforms implemented by the Central Bank of Nigeria (CBN).

These reforms, including the consolidation of exchange rate windows and liberalization of the FX market, have contributed to bolstering the naira’s strength against the dollar.

The CBN’s proactive measures aim to promote stability, transparency, and liquidity in the foreign exchange market, fostering confidence among investors and strengthening the national currency.

Continue Reading

Forex

CBN Governor Reveals $2.4 Billion Forex Forwards Under Investigation

Published

on

Naira Exchange Rates - Investors King

Governor Yemi Cardoso of the Central Bank of Nigeria (CBN) disclosed that law enforcement agencies are currently investigating foreign exchange forwards valued at $2.4 billion.

This announcement came in the wake of the Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday, March 26.

Governor Cardoso shed light on the meticulous forensic audit conducted on these transactions, which uncovered numerous discrepancies, rendering them ineligible for payment.

The CBN, while settling certain tranches of FX backlog, encountered transactions riddled with issues concerning their authenticity.

To address these concerns, Deloitte management consultants were enlisted to conduct a comprehensive forensic analysis spanning several months.

The audit revealed a multitude of irregularities, including allocations disbursed without corresponding requests, lack of proper documentation, and instances of outright illegality.

Cardoso emphasized the gravity of the situation, stating, “We refused to validate them because, apart from the fact that documentation was not satisfactory in many cases, they were outright illegal.”

He underscored the commitment of law enforcement agencies to investigate these transactions thoroughly.

Despite concerns about potential backlogs among stakeholders, Cardoso assured that the market remains open and transparent for addressing any outstanding contractual obligations.

The CBN has diligently verified and settled recognized backlogs of forward transactions.

This revelation comes at a critical juncture as Nigeria grapples with economic challenges, including inflationary pressures.

The MPC’s decision to raise the benchmark interest rate to 24.75 percent reflects efforts to stabilize prices and restore the purchasing power of the average Nigerian.

As investigations unfold and regulatory scrutiny intensifies, the CBN’s commitment to transparency and financial integrity will be closely monitored by stakeholders across the nation.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending