Forex

Asian Markets Cheer U.S.-Mexico Trade Deal

Published

6 years ago

August 28, 2018

Asian Markets Cheer U.S.-Mexico Trade Deal

Asian shares advanced on Tuesday and the U.S. dollar hovered near one-month lows as a U.S.-Mexico deal to overhaul the North American Free Trade Agreement boosted risk appetite.

Investors expect Canada too would agree to the new terms to preserve a three-nation pact, ultimately dispelling the economic uncertainty prompted by U.S. President Donald Trump’s repeated threats to ditch the 1994 NAFTA accord.

MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.6 percent for a second straight day of gains. Australian shares and Japan’s Nikkei both rose 0.7 percent.

New York’s S&P 500 and Nasdaq indexes hit record highs led by gains in technology stocks.

The upbeat trade outlook was further boosted by news that Washington was pressuring the European Union to accelerate tariff talks.

However, some analysts were cautious about the rally.

“News of the U.S.-Mexico trade deal has fuelled risk appetite,” ANZ analysts said in a client note. “It is hard to extrapolate much out of it, as the United States continues to treat each country and deal on its own merit. We remain wary of the current rally in risk appetite, and see it as short-lived.”

Disputes between the United States and its trading partners have been a drag on investor sentiment for much of the year despite solid economic fundamentals and two robust quarters of corporate earnings.

JPMorgan analysts said the trade deal was not necessarily positive for the outcome of talks with China.

“The NAFTA agreement is clearly a positive to the extent that it reduces the risk of a generalized global trade war,” they said.

“Despite this, APAC equities including HK/China should benefit from the weaker U.S. dollar and risk-on moves.”

Hong Kong’s Hang Seng index gained 0.6 percent while Chinese stocks were more subdued. Shanghai’s SSE Composite index held steady and the blue-chip CSI300 index slipped 0.1 percent.

The United States and China held two days of talks last week without a major breakthrough as their trade war escalated with the activation of another round of duelling tariffs on $16 billion of each country’s goods.

Investors will also stay focused on U.S. economic data with consumer confidence figures due later in the day and the latest estimate for second-quarter gross domestic product expected on Wednesday.

The dollar index paused near one-month lows against major currencies to stand at 94.84.

Against the yen, the greenback held at 111.28.

The euro was near a one-month top at $1.1680.

The Australian dollar, which is often used as a liquid hedge for global growth, was a tad lower at $0.7331 but well above a 1-1/2 year trough of $0.7203 touched earlier this month.

Oil prices were buoyant with Brent up 9 cents at $0.76.30 a barrel and U.S. crude 5 cents firmer at $68.92.

Gold was subdued with spot prices at $1,208.23 an ounce, down 0.2 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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Naira

Dollar to Naira Black Market Today, April 19th, 2024

As of April 19th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,100 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

18 hours ago

April 19, 2024

Samed Olukoya

As of April 19th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,100 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 N1,020 and sell it at N1,010 on Thursday, April 18th, 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.

Black Market Dollar to Naira Exchange Rate

Buying Rate: N1,100
Selling Rate: N1,090

Naira

Naira’s Recent Gain Reflects Policy Direction, Says CBN Chief Olayemi Cardoso

Published

2 days ago

April 18, 2024

Samed Olukoya

Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has explained that the recent surge in the Naira is a testament to the positive direction of government policies rather than active intervention to defend the currency’s value.

Addressing attendees at the spring meetings of the International Monetary Fund and World Bank in Washington, Governor Cardoso underscored that the CBN’s intention is not to artificially prop up the Naira.

He clarified that the fluctuations observed in the country’s foreign exchange reserves were not aimed at defending the currency but rather aligning with broader economic goals.

Over the past month, the Naira has experienced a notable uptick in value against the dollar, signaling a reversal from previous declines. Data from Bloomberg reveals a 6.4% decrease in liquid reserves since March 18, coinciding with the Naira’s rebound.

Despite this decline, Cardoso pointed out that around $600 million had flowed into the reserves in the past two days, reflecting confidence in the Nigerian market.

Governor Cardoso articulated the CBN’s vision of a market-driven exchange rate system, emphasizing the importance of allowing market forces to determine exchange rates through willing buyers and sellers.

He expressed optimism about a future where the central bank’s intervention in the foreign exchange market would be minimal, except in extraordinary circumstances.

The recent resilience of the Naira follows a period of volatility earlier in the year, marked by a substantial devaluation in January. Since then, the CBN has implemented measures to stabilize the currency, including monetary tightening and initiatives to enhance dollar liquidity.

Cardoso highlighted the transformation in market sentiment, noting that investors now perceive Nigeria’s central bank as committed to stabilizing inflation and fostering economic stability.

As Nigeria continues its journey toward economic recovery and stability, Cardoso’s remarks provide insight into the central bank’s strategy and its impact on the country’s currency dynamics.

Naira

Dollar to Naira Black Market Today, April 18th, 2024

As of April 18th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,020 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

2 days ago

April 18, 2024

Samed Olukoya

As of April 18th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,020 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 N1,050 and sell it at N1,040 on Wednesday, April 17th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate improved 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.