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Dollar Drops, Asia Shares Jump While Europe Swings

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Dollar
  • Dollar Drops, Asia Shares Jump While Europe Swings

The dollar sank and Treasuries climbed after the Federal Reserve signaled that inflation remains persistently below its target even as the economy picks up steam. Asian stocks jumped on optimism about corporate earnings, while European equities fluctuated.

The Bloomberg Dollar Spot Index touched the lowest in more than a year, while the 10-year Treasury yield extended losses after the Fed held rates steady and indicated it would start unwinding its balance sheet “relatively soon.” The MSCI Asia Pacific Index reached the highest since December 2007 after earnings from Samsung Electronics Co. and Nintendo Co. beat analysts’ estimates, while the Stoxx Europe 600 Index swung between gains and losses amid results from a load of heavyweight companies.

The Fed said inflation remains below the central bank’s 2 percent target even as near-term risks to the economic outlook appear balanced, signaling it intends to kick off the long-awaited reduction in its $4.5 trillion balance sheet in September and fueling speculation the central bank won’t rush to raise rates.

With the central bank’s announcement out of the way, investors can return to a corporate earnings season that’s seen more than 80 percent of S&P 500 companies deliver higher than-expected profit. Thursday is one of the busiest for Europe, with companies worth more than $3 trillion reporting their accounts.

Deutsche Bank AG, Europe’s largest investment bank, disappointed after reporting a 10 percent decline in second-quarter revenue, while Nestle SA warned that sales growth this year will be the weakest in at least two decades. The outlook was better in Asia, as Samsung Electronics earnings beat analysts’ estimates on the success of its new Galaxy S8 smartphones and surging prices of semiconductors, while Nintendo surprised investors with a big jump in quarterly profit.

Here are the main moves in markets:

Currencies

  • The Bloomberg Dollar Spot Index fell 0.1 percent as of 8:12 a.m. in London, after falling 0.6 percent on Wednesday. The yen traded at 111.24 per dollar, down 0.1 percent after erasing an earlier gain. The South Korean won jumped 0.8 percent.
  • The euro fell 0.1 percent to $1.1723 after a 0.8 percent advance on Wednesday sent the currency to a 30-month high. The British pound rose 0.1 percent after climbing 0.7 percent in the previous session.
  • The Aussie extended gains above 80 U.S. cents, rising 0.4 percent to the highest since May 2015 after jumping 0.9 percent Wednesday. It slid below 79 cents during local trading on Wednesday following weaker-than-expected Australian inflation data and a speech by the nation’s central bank governor.

Stocks

  • The Stoxx Europe 600 was flat. Nestle slumped 1.8 percent and Deutsche Bank lost 2.9 percent. AstraZeneca Plc tumbled 15 percent after the drugmaker suffered a blowto its next-generation cancer therapy.
  • Japan’s Topix index rose 0.4 percent, while Australia’s S&P/ASX 200 Index added 0.2 percent. South Korea’s Kospi index climbed 0.4 percent. In Hong Kong, the Hang Seng Index added 0.8 percent, while the Shanghai Composite Index increased 0.1 percent.
  • The Dow Jones Industrial Average rose above 21,700 for the first time on Wednesday.
  • Futures on the Nasdaq 100 Index climbed 0.6 percent. Facebook Inc. rose 3.4 percent in after-hours U.S. trading after the company reported faster-than-expected sales growth.

Bonds

  • The yield on 10-year Treasuries was at 2.28 percent, down less than one basis point after declining five basis points in the wake of the Fed statement from the previous session.
  • French, German and U.K. 10-year yields lost four basis points.
  • Australian government notes with a similar maturity saw yields fall four basis points to 2.69 percent, erasing Thursday’s gain of four basis points.

Commodities

  • Gold rose 0.1 percent to $1,262.19 an ounce after climbing 0.8 percent in the prior session.
  • West Texas Intermediate crude rose 0.3 percent to $48.91 a barrel, heading for a fourth day of gains.
  • The Bloomberg Commodity Index advanced 0.4 percent, after climbing 0.7 percent on Wednesday.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Naira

Naira Exchange Rates Today, Wednesday, July 28, 2021

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Dollar to Naira Exchange Rate - Investors King

Naira plunged further against its global counterparts as the Central Bank of Nigeria (CBN) announced on Tuesday it has stopped sales of forex to Bureau De Change Operators (BDCs).

The naira plunged against the United States Dollar from N505 it traded on Tuesday to N522 on Wednesday at the black market. Against the British Pound and the Euro, the local currency exchanged at N710 and N600, respectively.

The Central Bank of Nigeria had accused Bureau de Change operators of engaging in money laundering and illicit flows with criminal-minded individuals that operate mainly at the unregulated black market section of forex.

Operators at the bureau de change section of forex had been accused of being the main source of forex for speculators and hoarders that manipulate forex rates at the unregulated black market, this the CBN plans to curb by cutting its weekly forex supply to BDCs but focus on servicing the economy through the banks.

The Naira also declined from N500 to N520 against the United States Dollar at the Bureau De Change section. The decline continues against the British Pound and the Euro as it dropped from N700 and N595 to N705 and N600, respectively. See the tables below for more exchange rates.

Naira Black Market Exchange Rates

Morning * Midday** Evening *** Final Rates

Date USD GBP EURO YUAN Canadian Australian
NGN BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL
28/07/2021 515/522** 700/710** 590/600** 63/70 410/415 300/320
27/07/2021 500/505 695/703 585/592 62/69 407/415 300/320
26/07/2021 500/504 695/703 585/592 62/69 407/415 300/320
23/07/2021 500/504 698/705 588/595 62/69 407/415 300/320
22/07/2021 498/503 695/703 585/590 62/69 407/415 300/320
19/07/2021 495/503 698/705 585/592 62/69 407/415 300/320
16/07/2021 502/506 700/708 590/596 62/69 407/415 300/315
15/07/2021 500/505 700/708 590/596 62/69 407/415 300/320
14/07/2021 500/505 702/708 590/595 62/68 407/415 300/320
13/07/2021 500/505 702/708 590/595 62/68 407/415 300/320
12/07/2021 500/505 700/708 590/595 62/69 407/415 300/320
09/07/2021 500/505 700/708 588/593 62/69 407/417 300/320
08/07/2021 499/503 700/708 588/593 62/69 407/417 300/325
07/07/2021 499/503 700/710 588/593 62/69 407/417 300/325
06/07/2021 499/503 698/710 590/595 62/69 407/417 300/325

Bureau De Change Naira Rates

Date USD GBP EURO
NGN BUY/SELL BUY/SELL BUY/SELL
28/07/2021 510/520 695/705 580/600
27/07/2021 490/500 690/700 580/595
26/07/2021 490/500 694/705 580/595
23/07/2021 490/500 694/705 580/595
22/07/2021 490/500 690/705 580/595
19/07/2021 490/500 690/707 580/595
16/07/2021 490/500 700/710 585/600
15/07/2021 490/500 698/710 585/600
14/07/2021 490/500 698/710 590/595
13/07/2021 490/500 697/710 585/600
12/07/2021 490/500 698/710 585/600
09/07/2021 490/500 698/710 585/600
08/07/2021 490/500 697/710 585/600
07/07/2021 490/500 697/710 585/600
06/07/2021 490/500 697/710 585/600
05/07/2021 490/500 700/714 585/600

Central Bank of Nigeria’s Official Naira Rates

Date Currency Buying(NGN) Central(NGN) Selling(NGN)
7/27/2021 US DOLLAR 409.16 409.66 410.16
7/27/2021 EURO 483.5044 484.0952 484.6861
7/27/2021 SWISS FRANC 447.2183 447.7648 448.3113
7/27/2021 YEN 3.7196 3.7242 3.7287
7/27/2021 CFA 0.7161 0.7261 0.7361
7/27/2021 WAUA 580.9508 581.6608 582.3707
7/27/2021 YUAN/RENMINBI 62.8549 62.9322 63.0094
7/27/2021 RIYAL 109.0919 109.2252 109.3585
7/27/2021 SOUTH AFRICAN RAND 27.5662 27.5999 27.6336
7/27/2021 DANISH KRONA 64.9914 65.0708 65.1503

N.B: These tables are updated three times a day.

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Forex

CBN Halts Forex Sales to Bureau De Change Operators

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US Dollar - Investorsking.com

The Central Bank of Nigeria (CBN) on Tuesday announced it has halted the sales of forex to Bureau De Change Operators (BDCs) across the country.

Godwin Emefiele, Governor, CBN, disclosed this after the monetary policy committee’s meeting held in Abuja on Tuesday.

According to the CBN governor, bureau de Change Operators have become a conduit for illegal financial flows, saying they work with corrupt individuals to perpetrate crime, illicit flows and money laundering in the country.

The BDCs, in the past, have been linked to various financial crimes and at a point blamed partly for the chronic dollar scarcity being experienced across the country.

A large number of Bureau de Change Operators prefer to sell their weekly forex allocations from the CBN directly to speculators and hoarders at the parallel market, popularly known as the black market, for higher gains, hence they are responsible for several of the unregulated forex activities going on across the nation.

However, the CBN decision will impact Naira outlook and further plunge the embattled currency against global counterparts.

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Naira

Naira Exchange Rates Today, Tuesday, July 27, 2021

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Naira Notes - Investors King

Naira exchange rates remained largely unchanged across key forex segments on Tuesday morning as the local currency traded at N505 to a United States Dollar at the Bureau De Change section. While against the British Pound and the Euro common currency, it exchanged at N703 and N592, respectively.

At the Bureau de change section, the Naira traded at N500 to the United States Dollar but exchanged at N705 and N595 to a British Pound and Euro, respectively.

The Central Bank of Nigeria’s exchange rates remained inaccessible to most Nigerians despite the relatively better rates. Low dollar liquidity continued to weigh on the central bank’s ability to effectively support naira value and stimulate growth across key sectors of the economy. See the tables below for other exchange rates.

Naira Black Market Exchange Rates

Morning * Midday** Evening *** Final Rates

Date USD GBP EURO YUAN Canadian Australian
NGN BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL BUY/SELL
27/07/2021 500/505 695/703 585/592 62/69 407/415 300/320
26/07/2021 500/504 695/703 585/592 62/69 407/415 300/320
23/07/2021 500/504 698/705 588/595 62/69 407/415 300/320
22/07/2021 498/503 695/703 585/590 62/69 407/415 300/320
19/07/2021 495/503 698/705 585/592 62/69 407/415 300/320
16/07/2021 502/506 700/708 590/596 62/69 407/415 300/315
15/07/2021 500/505 700/708 590/596 62/69 407/415 300/320
14/07/2021 500/505 702/708 590/595 62/68 407/415 300/320
13/07/2021 500/505 702/708 590/595 62/68 407/415 300/320
12/07/2021 500/505 700/708 590/595 62/69 407/415 300/320
09/07/2021 500/505 700/708 588/593 62/69 407/417 300/320
08/07/2021 499/503 700/708 588/593 62/69 407/417 300/325
07/07/2021 499/503 700/710 588/593 62/69 407/417 300/325
06/07/2021 499/503 698/710 590/595 62/69 407/417 300/325

Bureau De Change Naira Rates

Date USD GBP EURO
NGN BUY/SELL BUY/SELL BUY/SELL
27/07/2021 490/500 690/700 580/595
26/07/2021 490/500 694/705 580/595
23/07/2021 490/500 694/705 580/595
22/07/2021 490/500 690/705 580/595
19/07/2021 490/500 690/707 580/595
16/07/2021 490/500 700/710 585/600
15/07/2021 490/500 698/710 585/600
14/07/2021 490/500 698/710 590/595
13/07/2021 490/500 697/710 585/600
12/07/2021 490/500 698/710 585/600
09/07/2021 490/500 698/710 585/600
08/07/2021 490/500 697/710 585/600
07/07/2021 490/500 697/710 585/600
06/07/2021 490/500 697/710 585/600
05/07/2021 490/500 700/714 585/600

Central Bank of Nigeria’s Official Naira Rates

N.B: These tables are updated three times a day.

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