Forex

Stocks Drop, Gold Leads Havens After Korea Missile

Published

7 years ago

August 29, 2017

Stocks Drop, Gold Leads Havens After Korea Missile

Headwinds stacked up for global markets on Tuesday, with stocks slumping across Europe and Asia and havens including gold jumping after North Korea fired a ballistic missile over Japan. Gasoline gained with oil as energy companies braced for another hit from Tropical Storm Harvey.

From London to Sydney equities retreated and volatility jumped amid classic risk-off moves, with U.S. stock futures also tumbling. Japan called Kim Jong Un’s latest provocation an “unprecedented, grave and serious threat.” Gold surged to the highest this year, while the Swiss franc and the yen were the best performing major currencies. Gasoline added to its rally as storm Harvey picked up strength again after inundating refineries along the Texas coast. The euro climbed above $1.20 for the first time since 2015.

Tuesday’s missile has thrust the confrontation between the U.S. and North Korea back to the fore after the hermit kingdom had been praised by Secretary of State Rex Tillerson last week for its “restraint.” Tillerson said that North Korea hadn’t carried out “provocative acts” since the UN Security Council imposed new sanctions earlier this month, and that Pyongyang’s temperance might lead to negotiations “in the near future.” Kim Jong Un last tested a missile on July 28.

“Some observers had thought the U.S. and North Korea were pursuing discussions behind closed doors, but it turns out North Korea continues to pursue missile development,” said Chihiro Ohta, a Tokyo-based senior strategist at SMBC Nikko Securities. “The risk-off stance is likely to continue even if the U.S. responds calmly.”

Here are the main moves in markets:

Asia

Japan’s Topix index closed 0.2 percent lower after falling as much as 0.7 percent, while South Korea’s Kospi index lost 0.2 percent, paring a drop of as much as 1.6 percent. The S&P/ASX 200 Index in Sydney declined 0.7 percent. Hong Kong’s Hang Seng Index fell 0.3 percent, while the Shanghai Composite Index fluctuated before edging higher.
Thailand’s SET Index bucked the main trend, rising 1.9 percent. Concern about political violence has eased, according to CLSA.
The yen advanced 0.6 percent to 108.57 per dollar.
The won slid 0.5 percent to 1,126.15 per dollar.

Stocks

The Stoxx Europe 600 Index dipped 1 percent as of 8:29 a.m. in London to the lowest in almost seven months.
The U.K.’s FTSE 100 Index fell 1 percent, the biggest decrease in more than two weeks on a closing basis.
Germany’s DAX Index sank 1.2 percent to the lowest in more than five months.
Futures on the S&P 500 Index fell 0.7 percent to the lowest in seven weeks.

Currencies

The Bloomberg Dollar Spot Index dipped 0.2 percent to the lowest in more than two years.
The euro gained 0.3 percent to $1.202, the strongest in almost three years.
The British pound climbed 0.1 percent to $1.2951, the strongest in more than two weeks.

Bonds

The yield on 10-year Treasuries declined five basis points to 2.11 percent, the lowest in almost 10 months.
Germany’s 10-year yield dipped four basis points to 0.33 percent, the lowest in two months.
Britain’s 10-year yield decreased four basis points to 1.012 percent, the lowest in two months.

Commodities

West Texas Intermediate crude increased 0.2 percent to $46.68 a barrel.
Gold rose 0.9 percent to $1,320.72 an ounce.
Gasoline for September delivery climbed 0.8 percent to $1.7256 a gallon, after climbing 2.7 percent on Monday.

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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

Black Market Dollar (USD) to Naira (NGN) Exchange Rate Today 25th July 2024

Published

2 days ago

July 25, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of July 25th, 2024 stood at 1 USD to ₦1,595.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,580 and sold it at ₦1,570 on Wednesday, July 24th, 2024.

This indicates a 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: ₦1,595
Selling Rate: ₦1,585

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.

Forex

IMTOs Drive 38.86% Rise in Foreign Exchange Inflows to $1.07bn in First Quarter of 2024

Published

4 days ago

July 23, 2024

Samed Olukoya

Foreign exchange inflows into Nigeria surged by 38.86% to $1.07 billion in the first quarter of 2024, according to the Central Bank of Nigeria’s (CBN) latest quarterly statistical bulletin.

This increase is attributed to the enhanced contributions from International Money Transfer Operators (IMTOs).

In January, IMTOs facilitated inflows amounting to $383.04 million. This figure dipped slightly to $322.83 million in February but rebounded to $363.70 million by March, this upward trend represents a 10.74% growth from the previous quarter of 2023.

The surge in forex inflows comes at a critical time for Nigeria, as the country continues to grapple with economic challenges, including inflation and a fluctuating naira.

The increased foreign exchange reserves are expected to provide much-needed stability to the naira and bolster Nigeria’s economic standing in the global arena.

CBN Governor Dr. Olayemi Cardoso has underscored the importance of remittances from the diaspora, which constitute approximately 6% of Nigeria’s GDP.

The recent approval of licenses for 14 new IMTOs is seen as a strategic move to enhance competition and lower transaction costs, thereby encouraging more remittances to flow through formal channels.

“We recognize the significant role that IMTOs play in our foreign exchange ecosystem,” Dr. Cardoso remarked during a recent press briefing.

“The inflows we’ve seen are a testament to the effectiveness of our strategy to engage with these operators and ensure that more remittances are channeled through official avenues.”

The CBN has also introduced measures to facilitate IMTOs’ access to naira liquidity at the official window, aiming to streamline the settlement of diaspora remittances.

This initiative is part of the broader effort to stabilize the forex market and address the persistent challenges of foreign currency availability.

The bulletin also revealed that the inflow from IMTOs has contributed significantly to Nigeria’s overall forex reserves, which are crucial for economic stability and growth.

Analysts suggest that the increased remittances will support the naira, providing relief amidst the country’s ongoing economic adjustments.

Forex

CBN Resumes Forex Sales as Naira Hits N1,570/$ at Parallel Market

Published

1 week ago

July 19, 2024

Samed Olukoya

The Central Bank of Nigeria (CBN) has resumed the sale of foreign exchange to eligible Bureau De Change (BDC) operators.

The decision was after Naira dipped to N1,570 per dollar in the parallel market,

CBN announced that it would sell dollars to BDCs at a rate of N1,450 per dollar. This decision aims to address distortions in the retail end of the forex market and support the demand for invisible transactions.

Following the CBN’s intervention, the dollar, which recently traded as low as 1,640 per dollar, has shown signs of stabilization.

The apex bank’s action is expected to inject liquidity and restore confidence among market participants.

BDC operators have welcomed the move. Mohammed Magaji, an operator in Abuja, noted that the dollar was selling at 1,630 per dollar.

He emphasized the market’s volatile nature but expressed optimism about the CBN’s intervention.

Aminu Gwadebe, President of the Association of Bureau de Change Operators of Nigeria, attributed the naira’s decline to acute shortages, speculative activities, and increased demand due to recent duty waivers.

He praised the CBN’s action as a necessary step to alleviate market pressures.

The CBN’s efforts include selling $20,000 to each eligible BDC, with a directive to limit profit margins to 1.5% above the purchase rate.

This strategy aims to ensure that end-users receive fair rates and to curb inflationary pressures.

The CBN’s ongoing reforms seek to achieve a market-determined exchange rate for the naira. As the naira continues to navigate turbulent waters, stakeholders remain hopeful that these measures will lead to a more stable and liquid forex market.

Market analysts suggest that sustained interventions and increased access to foreign exchange could help reverse the naira’s downward trend.

The CBN’s actions demonstrate a commitment to tackling the challenges facing the foreign exchange market and supporting Nigeria’s economic stability.