Forex

Japan Stock Rally Falters as Yen Gains Before Trump

Published

7 years ago

February 28, 2017

Japan Stock Rally Falters as Yen Gains Before Trump

Caution crept into financial markets ahead of Donald Trump’s address to Congress, as a rally in Tokyo stocks melted away and the yen strengthened.

Asian shares erased an earlier advance, paring gains for the month. Japan’s Topix gave up almost all of its 1 percent rise in the final half hour of trading. The shift in sentiment followed advances in the U.S. that pushed the winning streak for the Dow Jones Industrial Average to 12 sessions, the longest in 30 years. Treasuries were flat after Monday’s declines as the odds of a Federal Reserve interest-rate hike in March jumped. Crude remained above $54 a barrel.

Even as global equities climbed to record levels, investors have remained wary as they await details of Trump’s economic plans and watch for signals on the timing for higher rates. The White House began sketching out spending plans Monday, as Trump said he’d spend “big” on infrastructure, while adding that tax details won’t become clear until after the costs of repealing the Affordable Care Act are known.

“Dollar bears should take caution if Trump follows through on infrastructure and Yellen ratchets up the rate-hike rhetoric to end the week,” said Stephen Innes, senior currencies trader in the Asia Pacific at Oanda Corp. “The big question for the market is, will Trump use tonight’s platform to execute?”

Fed Bank of Dallas President Robert Kaplan said policy makers should raise interest rates “sooner rather than later” and not pay excessive attention to market expectations. The chance of a rate hike at the central bank’s March 14-15 meeting jumped to 50 percent, federal funds futures showed, from 34 percent just five days ago.

What’s coming up this week:

Trump is expected to outline his priorities for the nation in an address before a joint session of Congress on Tuesday night in the U.S.
Fed officials are making speeches this week, including Chair Janet Yellen who addresses an event in Chicago on Friday.
The Bank of Japan is due to introduce more clarity on its bond-purchase operations by announcing the exact dates of its monthly purchases and how much it plans to buy.
This week’s economic data include U.S. personal income and spending. India and Australia will report on fourth-quarter GDP. China’s PMI data are expected to show continued expansion.

Here are the main moves in markets:

Stocks

The MSCI Asia Pacific Index lost 0.2 percent as of 4:24 p.m. in Tokyo, heading lower for a third straight day. The index is still up 2.2 percent for February, after a 4.9 percent gain for January.
The Topix ended with a gain of 0.1 percent, following Monday’s 1 percent decline. The gauge ended February with a 0.9 percent increase.
New Zealand’s S&P/NZX 50 Index jumped 1.3 percent, the most since Jan. 4. Australia’s S&P/ASX 200 Index declined 0.2 percent and South Korea’s Kospi increased 0.3 percent.
Hong Kong’s Hang Seng fell 0.7 percent and the Shanghai Composite Index advanced 0.4 percent. The Hang Seng China Enterprises Index fell 0.5 percent, reducing its monthly gain to 4.8 percent.

Currencies

The yen added 0.3 percent to 112.35 per dollar, after sliding 0.5 percent Monday to snap a three-day winning streak. The South Korean won also climbed 0.3 percent.
The Aussie advanced less than 0.1 percent to 76.76 U.S. cents ahead of Wednesday’s GDP report.
The Bloomberg Dollar Spot Index fell 0.1 percent after a 0.1 percent advance Monday.

Bonds

Yields on 10-year Treasuries fell one basis point to 2.36 percent after rising five basis points Monday, reversing three straight days of declines.
Australian benchmark yields added one basis point to 2.72 percent.

Commodities

WTI crude futures were steady at $54.06 a barrel, near the highest since July 2015.
Gold rose 0.1 percent to $1,253.59, heading for a 3.5 percent increase for February.
Iron ore futures fell 2.5 percent, after Monday’s 2.7 percent jump. The metal is heading for a monthly gain of 7.1 percent.

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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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Forex

Yen Hits 34-Year Low Against Dollar Despite Bank of Japan’s Inaction

Published

20 hours ago

April 26, 2024

Samed Olukoya

The Japanese yen plummeted to a 34-year low against the US dollar, sending shockwaves through global financial markets.

Despite mounting pressure and speculation, the Bank of Japan (BOJ) chose to maintain its key interest rate.

The yen’s relentless slide, extending to 0.7% to 156.66 against the dollar, underscores deep concerns about Japan’s economic stability and the efficacy of its monetary policies.

BOJ Governor Kazuo Ueda’s remarks at a post-meeting news conference did little to assuage fears as he acknowledged the impact of foreign exchange dynamics on inflation but downplayed the yen’s influence on underlying prices.

Investors, already on edge due to the yen’s dismal performance this year, are now bracing for further volatility amid speculation of imminent intervention by Japanese authorities.

The absence of decisive action from the BOJ has heightened uncertainty, with concerns looming over the potential repercussions of a prolonged yen depreciation.

The implications of the yen’s decline extend far beyond Japan’s borders, reverberating across global markets. The currency’s status as the worst-performing among major currencies in the Group of Ten (G-10) underscores its significance in the international financial landscape.

Policymakers have issued repeated warnings against excessive depreciation, signaling a commitment to intervene if necessary to safeguard economic stability.

Finance Minister Shunichi Suzuki reiterated the government’s readiness to respond to foreign exchange fluctuations, emphasizing the need for vigilance in the face of market volatility.

However, the lack of concrete action from Japanese authorities has left investors grappling with uncertainty, unsure of the yen’s trajectory in the days to come.

Market analysts warn of the potential for further downside risk, particularly in light of upcoming economic data releases and the prospect of thin trading volumes due to public holidays in Japan.

The absence of coordinated intervention efforts and a clear policy stance only exacerbates concerns, fueling speculation about the yen’s future trajectory.

The yen’s current predicament evokes memories of past episodes of currency turmoil, prompting comparisons to Japan’s intervention in 2022 when the currency experienced a similar downward spiral.

The prospect of history repeating itself looms large, as market participants weigh the possibility of intervention against the backdrop of an increasingly volatile global economy.

As Japan grapples with the yen’s precipitous decline, the stakes have never been higher for policymakers tasked with restoring stability to the currency markets. With the world watching closely, the fate of the yen hangs in the balance, poised between intervention and inertia in the face of unprecedented challenges.

Naira

Dollar to Naira Black Market Today, April 25th, 2024

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

2 days ago

April 25, 2024

Samed Olukoya

Naira to Dollar Exchange- Investors King Rate - Investors King

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 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 N1,260 and sell it at N1,250 on Wednesday, April 24th, 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: N1,300
Selling Rate: N1,290

Naira

Dollar to Naira Black Market Today, April 24th, 2024

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

3 days ago

April 24, 2024

Samed Olukoya

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 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 N1,250 and sell it at N1,240 on Tuesday, April 23rd, 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.