Forex

Dollar Rises Against Yen as U.S.-Mexico Trade Deal Boosts Sentiment

Published

6 years ago

August 28, 2018

Dollar Rises Against Yen as U.S.-Mexico Trade Deal Boosts Sentiment

The dollar remained near one-month lows against the euro on Tuesday, but gained against the yen after a U.S.-Mexico deal aimed at overhauling the North American Free Trade Agreement boosted appetite for riskier assets.

The agreement put pressure on Canada to consent to new terms in order to preserve a three-nation pact, which could revive economic uncertainty caused by U.S. President Donald Trump’s repeated threats to ditch the 1994 accord.

However, Ayako Sera, Tokyo-based market strategist at Sumitomo Mitsui Trust Bank, said the U.S.-Mexico deal slightly eased concerns about an escalation of international trade tensions for now.

“It isn’t the case that the trade problems between Mexico and the United States have been completely solved. Going forward, Canada will become involved, so there are still parts that are hard to predict,” Sera said.

“Sino-U.S. trade problems haven’t been solved yet and it remains unclear what Canada will do in relation to the agreement.”

As of 0435 GMT on Tuesday, the euro held onto most gains made over the past few days, trading at $1.16735. It touched as high as $1.16975 in early trading, its highest level since Aug. 1, before paring some gains.

The common currency extended five days of gains against the Japanese yen during which it has risen about 2.7 percent.

As of 0435 GMT, it was about 0.1 percent higher at 129.89 yen per euro, giving up some gains after reaching as high as 130.05 yen.

The dollar also rose against the yen, gaining about 0.2 percent to 111.26 yen per dollar.

Shusuke Yamada, currency and equity strategist at Bank of America Merrill Lynch in Tokyo, said a de-escalation of trade tensions tends to be negative for the safe-haven yen, while supporting cross-yen trades.

“Cross-yen pairs like euro/yen…have been a function of risk assets,” Yamada said.

The dollar index, which measures the greenback’s performance against six other currencies, was slightly higher at 94.846, paring losses after reaching its lowest level since Aug. 2 in early trade.

The dollar has fallen more than 2 percent since hitting a high not seen in over a year on Aug. 15, amid U.S. President Donald Trump’s criticism of the Federal Reserve for raising interest rates at a time when the U.S. government was trying to stimulate the economy.

The Canadian dollar was 0.15 percent higher at $1.2974 after slipping almost half a percent on Monday.

The Mexican peso was about 0.4 percent lower at 18.853 per dollar, giving up some gains from the previous day.

On Monday, the peso closed about 0.8 percent higher after initially rising about 1.2 percent on the news that the United States and Mexico had reached agreement.

China’s offshore yuan traded about 0.2 percent lower at 6.8095 per dollar as of 0445 GMT.

It was not far off 6.7818, its strongest level since July 31, which was touched on Monday after the central bank late last week revived a “counter-cyclical factor” in its daily fixing to support the currency.

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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.