Connect with us

Forex

Dollar Slips Across Board on Monday on Rising COVID-19 Cases

Published

on

US Dollar - Investorsking.com

Dollar Trades Lower as Concern Over Second Wave of COVID-19 Deepens

The United States dollar slipped on Monday as investors remained concerned over the rising number of COVID-19 confirmed cases in the US and the rest of the world.

The world’s largest economy that recently announced additional stimulus to further boost economic recovery and support small businesses reported more than 30,000 new cases on Friday and Saturday, making it the highest daily totals since May 1, according to data compiled by Johns Hopkins University.

“We expect the FX markets to remain caught between recovering economic indicators and concerns about a second-wave of COVID-19 infections in the week ahead,” analysts at Barclays stated on Monday

Sameer Goel, a chief macro strategist at Deutsche Bank,  Asia, said the big question for investors right now on US dollar is the greenback should be trading at a safe-haven risk premium as concerns rise over a potential second wave of virus infections.

During the Asian trading session, the US dollar index stood at 97.503 against a basket of currencies, down from 96.5 it traded earlier in the month.

Against the British Pound, the US dollar pulled back slightly after plunging for the last 8 days as shown below.

GBPUSDDaily

Tope Pete, a currency trader, who spoke with our correspondent on GBPUSD pair, said “1.2175 is an area of interest on the daily chart for the cable. It is an area that lies around the 38.2 percent fibo level of 2019 high (1.3513 of Dec 13, 2019) and 2020 low (1.1640 of Mar 2020).

“As can be seen on this daily chart, a bearish candle pattern for a reversal in an uptrend market was completed on June 11, 2020, right beneath the 61.8 percent fibo region of the aforementioned high and low area. An entry at the end of the candle pattern formation would have given a sell entry at the opening of June 12, 2020 candle with Targets at the 50 percent area (1.2465) and 38.2 percent area (1.2210).

“However, for those who couldn’t get in at the aforementioned entry, a further selloff is been anticipated while entries will only be confirmed with a strong bearish candle reversal pattern along the 50 percent region where it currently is.

“A strong bullish run above the 1.2720 area totally invalidates this setup.

“As the UK government looks to ease down on the COVID-19 guidelines on social distancing, more business will open up for transaction and this could help the UK economy make a good spring.”

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.

Naira

Naira Closed at N411.25 to US Dollar at NAFEX Window

Published

on

Naira Dollar Exchange Rate - Investors King

The Nigerian Naira declined further against the U.S Dollar on Tuesday ahead of the Ramadan holiday to trade at N411.25 to a single U.S Dollar at the Nigerian Autonomous Foreign Exchange (NAFEX) window.

The local currency plunged as low as N420.23 per dollar during the trading hours of Tuesday despite opening the day at N410.33/US$ before settling at N411.25 to a US dollar.

Investors on the window exchanged $98.33 million on Tuesday.

At the parallel section of the foreign exchange, Naira traded at N483 to a United States Dollar; N673 to a British Pound and N580 to a Euro.

Foreign exchange rates remained largely unchanged at the bureau de change section, with the Naira trading at N482 to a U.S Dollar; N674 to a British Pound and N584 to a Euro.

Several factors continue to weigh on the Nigerian Naira, especially with the foreign reserves hovering around record low and crude oil output not at an optimal level.

Other factors like rising inflation rate and drop in economic activity due to COVID-19 effect on the economy and lack of enough fiscal buffer to cushion the economy.

Continue Reading

Naira

Daily Naira Exchange Rates; Thursday, May 6, 2021

Published

on

Naira Exchange Rates - Investors King

Naira depreciated further at the parallel market on Thursday as the local currency traded at N485 to a United States Dollar. The Nigerian Naira exchanged at N676 to a British Pound and N585 to a Euro as shown below.

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
06/05/2021 480/485 665/676 575/585 62/69 395/405 292/320

Bureau De Change Naira Rates

Date

USD

GBP

EURO

NGN

BUY/SELL

BUY/SELL

BUY/SELL

06/05/2021

475/482

663/676

575/587

06/05/2021

475/482

663/676

575/587

Central Bank of Nigeria’s Official Naira Rates

Continue Reading

Forex

CBN Extends N5/$ Incentive Period to Boost Dollar Inflow

Published

on

Godwin Emefiele - Investors King

The Central Bank of Nigeria (CBN) has extended the N5 per US Dollar incentive on forex remittance indefinitely to boost liquidity and further deepen economic recovery.

The initiative was scheduled to end on May 8. It was introduced to encourage recipients of dollars to use formal banking channels and help the central bank capture such inflows to boost the stability of the local currency, which has been under pressure after oil prices plunged last year.

“We hereby announce the continuation of the scheme until further notice,” the regulator said in a statement on its website on Thursday.

The naira has been devalued three times since last year after a sharp drop in oil earnings, which accounts for 90% of foreign-exchange inflows, and remittances from workers abroad led to a dollar crunch in the West African nation, which produces the most crude in Africa. The local unit traded for 410.31 on the investors and exporters window, also called Nafex, as of 8:51 a.m. in Lagos.

Continue Reading

Trending