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Stocks Fall, Havens Gain as Korea Tensions FlareStocks Fall, Havens Gain as Korea Tensions Flare

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  • Stocks Fall, Havens Gain as Korea Tensions FlareStocks Fall, Havens Gain as Korea Tensions Flare

Stocks fell and gold and the yen climbed as geopolitical tensions flared up again, with U.S. president Donald Trump weighing new economic sanctions that could target China after a nuclear test Sunday by North Korea.

The Stoxx Europe 600 Index declined, with banks and technology companies bearing the brunt as all industry sectors moved into the red after a report that Pyongyang is preparing to launch an intercontinental ballistic missile heightened investors’ unease. The MSCI Asia Pacific Index was on track for the biggest drop since Trump’s vow to return nuclear threats with “fire and fury” in early August. S&P index futures also fell, while most European government bonds advanced and the yen and Swiss franc led currency gains. Industrial metals including copper and nickel extended a rally.

The White House warned any nation doing business with Kim Jong Un’s regime would be met with economic sanctions and trade embargoes, and his defense chief said the U.S. has “many military options.” North Korea said Sunday it successfully tested a hydrogen bomb with “unprecedentedly big power.” The test, the first since Trump took office, is a new hurdle for markets that have proven resilient to recent bouts of tension on the Korean peninsula.

“Expect some short-term risk-aversion trades,” Citigroup Inc. economists led by Johanna Chua wrote in a client note. “But such market moves tend to be short-lived, as typically tensions defuse quickly. So unless the global response to this test raises the probability of a military strike or North Korean regime collapse (both unlikely), this time may play out similarly.”

Some investors are choosing to hold more cash in the face of increasing geopolitical instability. Nader Naeimi, who heads a dynamic investment fund at AMP Capital in Sydney and helps manage about $110 billion, has about 30 percent of his holdings in cash, while Chicago-based Ariel Investments is holding more cash versus its target in the event a pullback creates buying opportunities.

“While today’s fall in risk assets might not be deep, the process is one of an incremental rise in market volatility,” Naeimi said. This “will culminate in a deeper-than-expected correction,” he said.

Stocks

  • The Stoxx Europe 600 Index sank 0.6 percent as of 9:40 a.m. in London.
  • The U.K.’s FTSE 100 Index dipped 0.3 percent.
  • Germany’s DAX Index fell 0.5 percent.
  • The MSCI All-Country World Index sank 0.2 percent, the largest dip in more than two weeks.
  • Futures on the S&P 500 Index declined 0.4 percent.

Currencies

  • The Bloomberg Dollar Spot Index dipped 0.2 percent.
  • The euro gained 0.5 percent to $1.1915.
  • The British pound was little changed at $1.2943.
  • The Japanese yen jumped 0.7 percent to 109.45 per dollar, the largest climb in more than three weeks.
  • The Swiss franc increased 0.8 percent to $0.9574.

Bonds

  • Germany’s 10-year yield declined two basis points to 0.36 percent.
  • Britain’s 10-year yield dipped one basis point to 1.04 percent.

Commodities

  • Gold gained 1 percent to $1,338.16 an ounce, the strongest in a year.
  • West Texas Intermediate crude decreased 0.1 percent to $47.22 a barrel.
  • Copper advanced 0.8 percent to $3.14 a pound, the highest in about three years.
  • Nickel advanced 1 percent to $12,155 per metric ton, the highest in more than two years.

Asia

  • Japan’s Topix index ended 1 percent lower, while South Korea’s Kospi index lost 1.2 percent and the S&P/ASX 200 Index in Sydney declined 0.4 percent.
  • The Hang Seng Index in Hong Kong fell 1 percent.
  • Indexes rose in China. The Philippines’ main gauge jumped 1 percent.
  • The MSCI Asia Pacific Index fell 0.6 percent, poised for its worst decline since Aug. 11.

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

Daily Naira Exchange Rates; Friday, March 5, 2021

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naira

Naira Exchange Rates; Friday, March 5, 2021

Naira remained pressured across key foreign exchange markets on Friday, March 5, 2021 as scarcity persists. The local currency traded at N480 to a United States Dollar at the parallel market on Friday morning while it exchanged at N675 to a British Pound and N582 to the European common currency.

Daily 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
05/03/2021 475/480 670/675 575/582 60/68 385/395 382/300
04/03/2021 475/480 665/672 574/580 60/68 385/395 382/300
03/03/2021 475/480 662/672 574/580 60/68 385/395 382/300
02/03/2021 475/480 662/672 574/580 60/68 385/395 382/300
01/03/2021 475/482 662/672 575/583 60/68 385/395 382/300
26/02/2021 475/482 660/672 575/583 60/68 385/395 382/300
25/02/2021 475/480 660/670 572/580 60/68 385/395 282/300
24/02/2021 475/480 655/670 570/580 60/68 385/395 282/300
23/02/2021 475/480 655/665 575/582 60/68 385/395 282/300
22/02/2021 475/480 652/660 575/580 60/68 385/395 282/300
19/02/2021 474/478 648/655 570/577 60/68 385/395 282/300
18/02/2021 472/477 645/655 570/575 60/68 385/395 282/300
17/02/2021 472/478 645/655 570/575 60/68 385/395 282/300
16/02/2021 465/473 645/652 565/570 60/68 385/395 282/300
15/02/2021 465/473 642/652 562/570 60/68 385/395 282/300
12/02/2021 465/473 642/650 562/570 60/68 385/395 282/300
11/02/2021 465/475 640/650 560/570 60/70 385/400 280/300
10/02/2021 472/478 645/652 565/575 60/70 385/400 280/300
09/02/2021 474/480 645/655 567/575 60/70 385/400 280/300
08/02/2021 474/480 645/655 567/575 60/70 385/400 280/300
05/02/2021 474/480 645/653 567/578 60/70 385/400 280/300
04/02/2021 474/480 645/653 567/578 60/70 385/400 280/300
03/02/2021 474/480 642/655 575/580 60/70 385/400 280/300
02/02/2021 474/480 642/655 575/580 60/70 385/400 280/300
01/02/2021 474/480 642/655 575/580 60/70 385/400 280/300
29/01/2021 474/480 642/652 575/580 60/70 385/400 280/300

Bureau De Change Naira Rates

Date USD GBP EURO
NGN BUY/SELL BUY/SELL BUY/SELL
05/03/2021 470/480 662/672 570/580
04/03/2021 470/480 662/672 570/580
03/03/2021 470/480 662/670 573/580
02/03/2021 470/480 660/669 573/580
01/03/2021 470/480 660/669 574/580
26/02/2021 470/480 660/669 574/580
25/02/2021 470/480 658/665 574/580
24/02/2021 470/478 654/660 570/578
23/02/2021 470/478 654/660 570/578
22/02/2021 470/477 650/656 570/577
19/02/2021 465/476 645/656 565/573
18/02/2021 465/475 640/652 563/570
17/02/2021 465/477 640/655 562/572
16/02/2021 460/475 640/652 562/570
15/02/2021 460/475 638/652 561/568
12/02/2021 467/475 635/650 562/570
11/02/2021 465/475 640/655 560/575
10/02/2021 472/478 640/655 565/575
09/02/2021 472/478 640/655 565/575
08/02/2021 472/478 640/655 565/575
05/02/2021 472/478 640/650 565/575
04/02/2021 472/478 640/650 565/575
03/02/2021 471/478 640/650 572/580
02/02/2021 471/478 640/655 572/580
01/02/2021 471/478 640/655 572/580
29/01/2021 471/477 640/648 570/579

Central Bank of Nigeria’s Official Naira Rates

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Naira

Naira Hits Record Low of N427 Against the United States Dollar on I&E FX Window

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Nigeria 1000 notes

Naira Exchanges at N427 Against the United States Dollar on I&E FX Window

The Nigerian Naira plunged to as low as N427.45 against the United States Dollar on the Investors and Exporters Foreign Exchange Window on Thursday, March 4, 2021.

The local currency pulled back to N406.50 a US Dollar but opened lower at N412.50 on Friday morning.

Investors traded $66.99 million during the trading hours of Thursday.

At the black market section of the foreign exchange, Naira traded at N480 against the United States Dollar while the British Pound was exchanged at N673.

The Euro common currency remained unchanged at N580, the same rate it exchanged on Monday.

Despite the surge in the oil price to N67 per barrel and a series of forex policies, the Central Bank of Nigeria continues to struggle with low dollar liquidity across the board.

Nigeria’s foreign reserves declined by about $1 billion in one month as Africa’s largest economy struggles with the weak fiscal buffer necessary to mitigate COVID-19 impacts and deepen productivity.

It would be recalled that the Central Bank of Nigeria adjusted its diaspora foreign remittance policy to curb rising foreign exchange rates and put an end to black market transactions hurting the nation’s local currency value.

However, since the new policy was enacted in November 2020, forex scarcity remained pervasive with diaspora remittance inflow expected to decline by $2 billion in 2020.

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Naira

Daily Naira Exchange Rates; Thursday, March 4, 2021

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interbank

Naira Exchange Rates; Thursday, March 4, 2021

Naira exchanged lower against global counterparts on Thursday morning as scarcity persists across forex segments. Naira traded at N480 to United States Dollar on the black market while to a British Pound it sold for N672 as shown below.

Daily 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
04/03/2021 475/480 665/672 574/580 60/68 385/395 382/300
03/03/2021 475/480 662/672 574/580 60/68 385/395 382/300
02/03/2021 475/480 662/672 574/580 60/68 385/395 382/300
01/03/2021 475/482 662/672 575/583 60/68 385/395 382/300
26/02/2021 475/482 660/672 575/583 60/68 385/395 382/300
25/02/2021 475/480 660/670 572/580 60/68 385/395 282/300
24/02/2021 475/480 655/670 570/580 60/68 385/395 282/300
23/02/2021 475/480 655/665 575/582 60/68 385/395 282/300
22/02/2021 475/480 652/660 575/580 60/68 385/395 282/300
19/02/2021 474/478 648/655 570/577 60/68 385/395 282/300
18/02/2021 472/477 645/655 570/575 60/68 385/395 282/300
17/02/2021 472/478 645/655 570/575 60/68 385/395 282/300
16/02/2021 465/473 645/652 565/570 60/68 385/395 282/300
15/02/2021 465/473 642/652 562/570 60/68 385/395 282/300
12/02/2021 465/473 642/650 562/570 60/68 385/395 282/300
11/02/2021 465/475 640/650 560/570 60/70 385/400 280/300
10/02/2021 472/478 645/652 565/575 60/70 385/400 280/300
09/02/2021 474/480 645/655 567/575 60/70 385/400 280/300
08/02/2021 474/480 645/655 567/575 60/70 385/400 280/300
05/02/2021 474/480 645/653 567/578 60/70 385/400 280/300
04/02/2021 474/480 645/653 567/578 60/70 385/400 280/300
03/02/2021 474/480 642/655 575/580 60/70 385/400 280/300
02/02/2021 474/480 642/655 575/580 60/70 385/400 280/300
01/02/2021 474/480 642/655 575/580 60/70 385/400 280/300
29/01/2021 474/480 642/652 575/580 60/70 385/400 280/300

Bureau De Change Naira Rates

Date USD GBP EURO
NGN BUY/SELL BUY/SELL BUY/SELL
04/03/2021 470/480 662/672 570/580
03/03/2021 470/480 662/670 573/580
02/03/2021 470/480 660/669 573/580
01/03/2021 470/480 660/669 574/580
26/02/2021 470/480 660/669 574/580
25/02/2021 470/480 658/665 574/580
24/02/2021 470/478 654/660 570/578
23/02/2021 470/478 654/660 570/578
22/02/2021 470/477 650/656 570/577
19/02/2021 465/476 645/656 565/573
18/02/2021 465/475 640/652 563/570
17/02/2021 465/477 640/655 562/572
16/02/2021 460/475 640/652 562/570
15/02/2021 460/475 638/652 561/568
12/02/2021 467/475 635/650 562/570
11/02/2021 465/475 640/655 560/575
10/02/2021 472/478 640/655 565/575
09/02/2021 472/478 640/655 565/575
08/02/2021 472/478 640/655 565/575
05/02/2021 472/478 640/650 565/575
04/02/2021 472/478 640/650 565/575
03/02/2021 471/478 640/650 572/580
02/02/2021 471/478 640/655 572/580
01/02/2021 471/478 640/655 572/580
29/01/2021 471/477 640/648 570/579

Central Bank of Nigeria’s Official Naira Rates

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