Forex

Dollar Dips Despite U.S. Tariff Fears as Brexit Hopes Lift Pound

Published

6 years ago

September 6, 2018

Dollar Dips Despite U.S. Tariff Fears as Brexit Hopes Lift Pound

The dollar edged down on Thursday after a bounce in European currencies but investors said concerns about U.S. President Donald Trump imposing further tariffs on Chinese imports could lift the greenback.

Trump could impose levies on $200 billion more of Chinese imports on Thursday when a public comment period on the new tariffs ends.

That would represent a significant ramping up of the trade war between the world’s two largest economies and lift the dollar which has become a principal haven for investors seeking shelter from the conflict.

The greenback on Thursday, however, edged down 0.1 percent against a basket of major currencies to 95.121.

Traders said that was because of gains made by sterling after Bloomberg reported on Wednesday that Germany would accept a less detailed agreement on Britain’s future ties with the EU to get a Brexit deal done.

Germany denied that its position on Brexit had changed though sterling still traded up 0.2 percent against the dollar at $1.2925.

“The dollar continues to face residual pressure from the buoyant pound amid the latest speculation over Brexit. How long this lift could last remains to be seen, but it is prompting buy backs of other European currencies like the euro and Swiss franc for now,” said Takuya Kanda, general manager at Gaitame.com Research.

SWEDISH CROWN PRESSURED

Elsewhere, the Swedish crown sank 0.7 percent versus the euro after the Swedish central bank kept rates unchanged and closed the door for a rate hike in October.

The Swedish currency fell last week to a nine-year low against the euro on concern about an approaching election and growing investor conviction that interest rates may not rise until well into 2019.

The crown has weakened more than any other developed-world currency this year, falling 12 percent against the dollar. The Swedish central bank is expected to be among the last to end stimulus policies dating from the 2008 financial crisis.

“The krona may struggle to rally much even with the Riksbank continuing to indicate a rate hike is coming later this year,” said Kit Juckes, global head of FX strategy at Societe Generale.

“There are buyers of the currency ahead of this weekend’s election on the grounds that the vote won’t change the underlying support of a near 4 percent current account surplus … but the global backdrop is definitely pulling the other way,” he added.

In contrast to the Riksbank and other European central banks, the United States Federal Reserve has been steadily raising borrowing costs since late 2015, lending support to the dollar.

The greenback’s more than 6 percent rise against its rivals over the past six months has hit emerging market currencies hard.

An index of emerging market currencies is trading at more than one-year lows amid fears those currencies would be hit by the global trade conflict as it negatively affects their export-oriented economies.

Argentina’s peso, which has lost more than 50 percent of its value this year, saw a rare pause in losses overnight.

Helping to restore some investor confidence, Argentine Economy Minister Nicolas Dujovne said on Tuesday he believed a deal to release early disbursements from a $50 billion standby loan agreement with the IMF could be put to its board by the end of the month.

The Argentine peso closed up more than 1 percent at 38.52 per dollar on Wednesday.

Elsewhere, the Australian dollar was flat at $0.7196.

As with the previous day, when strong gross domestic product data did not provide much of a lift, Thursday’s economic indicators were unable to prop up the Aussie.

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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 to Naira Exchange Rate Today 17th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Published

1 day ago

May 17, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,560 and sold it at ₦1,550 on Thursday, May 16th, 2024.

This indicates a slight improvement in the Naira exchange rate 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: ₦1,540
Selling Rate: ₦1,530

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

SEC and ABCON Explore Collaboration for ‘Kolectyomoni’ Digital Currency Platform

Published

1 day ago

May 17, 2024

Samed Olukoya

The Association of Bureaux De Change Operators of Nigeria (ABCON) has initiated talks with the Securities and Exchange Commission (SEC) to explore collaboration on its upcoming digital currency market platform, ‘Kolectyomoni’.

This move was underscored during an official visit by ABCON representatives to the newly appointed Director General of the SEC, Dr. Timi Agama. Aminu Gwadabe, President of ABCON, conveyed the association’s eagerness to engage with SEC to ensure the smooth operation of its digital currency platform.

Gwadabe emphasized that ABCON recognizes the regulatory oversight of SEC in the financial sector and seeks its guidance to navigate the complexities of the digital currency market.

He pointed out that while digital currencies hold immense potential for financial inclusion and innovation, they also present regulatory challenges that require collaborative efforts between industry stakeholders and regulatory bodies.

Highlighting the significance of embracing digital currencies, Gwadabe noted, “The future of BDC’s business is digital currency.”

He stressed the growing adoption of digital currencies among Nigerians, citing statistics that reveal a rising number of participants in the digital currency ecosystem, with a substantial market size of $9 billion annually.

In response, Dr. Timi Agama expressed SEC’s openness to support and facilitate the growth of the digital currency sector in Nigeria.

He acknowledged ABCON’s initiative in launching the ‘Kolectyomoni’ platform and assured of SEC’s cooperation in providing regulatory guidance and oversight.

Agama reaffirmed SEC’s commitment to fostering innovation in the financial sector while ensuring investor protection and market integrity.

He underscored the importance of collaboration between regulators and industry players to develop robust frameworks that foster innovation and safeguard against potential risks.

Furthermore, Agama encouraged ABCON to finalize the development of the ‘Kolectyomoni’ digital currency platform and submit it to the SEC for thorough review and assessment by the technical team.

He emphasized the need for timely regulatory oversight to address emerging trends in the digital currency market and maintain regulatory compliance.

Naira

Black Market Dollar to Naira Exchange Rate Today 16th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Published

2 days ago

May 16, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,530 and sold it at ₦1,520 on Wednesday, May 15th, 2024.

This indicates a decline in the Naira exchange rate compared to the current 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.