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U.S Dollar Pares Losses Against Safe Haven Yen on Wednesday

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United States Dollar - Investors King Ltd

The United States Dollar rebounded slightly from a three-day low recorded against major peers since the Federal Reserve announced tapering without plans to raise interest rates in spite of the inflation rate hitting 5.4 percent in the month of September.

The U.S dollar after trading near one month low against the Japanese Yen in the early hours of Wednesday rebounded from 112.76 to 113.15 at the time of writing. Widely regarded as safe haven, investors normally jump on Yen during a period of high uncertainty to curb risk exposure.

The dollar index, which measures the greenback against six major currencies, was largely unchanged at 93.997 after declining gradually from more than a one-year high of 94.634 it reached on Friday.

The Euro common currency was little changed at $1.1565, sustaining its three-day gain against the greenback.

Experts are predicting that a further increase in Consumer Price Index, which measures inflation, in October could force the Fed to raise interest rates than previously anticipated. Economists polled by Reuters are predicting 0.4 percent for CPI in October, up from 0.2 percent in September.

Still, We’ll need to see a print of 0.8% month-on-month to see the dollar index break out of the top of the range of 94.50,” Chris Weston, head of research at brokerage Pepperstone in Melbourne, wrote in a client note.

Although the dollar has been trending lower against the yen, “if U.S. CPI comes in hot then this poses a risk to USDJPY shorts,” he wrote.

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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Dollar Rises Post-Debate as Trump Outshines Biden

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US Dollar - Investorsking.com

In the aftermath of the first US presidential debate, the dollar saw an uptick in Asian trading on Friday as markets perceived former President Donald Trump as the debate’s victor.

The Bloomberg gauge of the US currency rose by as much as 0.2% before the movement pared back, positioning the index for its sixth consecutive weekly gain.

President Joe Biden’s stumbling performance during the early exchanges of the debate has raised concerns about his capability to secure a victory against Trump in the upcoming November election.

These concerns are echoed by Carol Kong, a strategist at Commonwealth Bank of Australia in Sydney, who stated, “Markets likely extrapolated today’s debate outcome to the actual election outcome in November.”

Trump reiterated his pledge to impose 10% duties on imports if he wins the election, a policy expected to exert upward pressure on inflation.

This potential inflationary pressure could delay interest rate cuts that would otherwise weigh down the dollar.

“Trump’s policies are likely to add to inflationary pressures and escalate trade tensions, thereby supporting US interest rates and the safe haven US dollar,” Kong added.

The debate’s outcome also impacted other financial metrics. Asian currencies remained mostly steady, while the Mexican peso initially dropped almost 1% before recovering to a 0.2% loss.

Treasury yields edged higher, and US equity futures posted modest gains ahead of the Federal Reserve’s preferred inflation measure, due later on Friday.

Despite the rocky start for Biden, Vice President Kamala Harris emphasized that the President finished the debate strong.

However, PredictIt’s live betting odds shifted in Trump’s favor, with his chances of winning the November vote rising from approximately 53% to 58% after the debate.

While US consumer spending data due on Friday could lead to a short-term weakening of the dollar if it shows easing, the dollar is likely to remain robust into the following week.

Investors are bracing for election risks in France and the UK, according to Mahjabeen Zaman, head of FX research at Australia & New Zealand Banking Group in Sydney.

Market sentiment in Asian equities was largely positive, with most regional stock markets advancing during the debate.

Chinese benchmarks recovered from early losses and moved away from technical correction territory, as the absence of hawkish comments on China was seen as a positive surprise by traders.

The Hang Seng China Enterprises Index rose by as much as 0.8%.

Redmond Wong, market strategist at Saxo Capital Markets, described the outcome as a “positive surprise for this part of the world, but only moderately so.”

He added that the political consensus on dealing with China extends beyond the presidential candidates to Congress, suggesting that some escalation of tensions could still occur in the coming months.

Xin-Yao Ng, director of investment at abrdn, echoed this sentiment, stating that while the lack of hawkish comments on China was “probably a surprise,” the bipartisan stance on China policy means there is limited ground for the candidates to attack each other on this issue.

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NAFEM Dollar Sales Plummet to $84.1m, Naira Dips to N1,537/$

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U.S dollar - Investors King

On Friday, the Nigeria Autonomous Foreign Exchange Market (NAFEM) witnessed a substantial decline in dollar sales, plummeting to $84.1 million from the previous day’s $331.1 million, representing a 74% drop.

Concurrently, the value of the Nigerian naira depreciated, falling to N1,537 against the US dollar compared to N1,498 recorded in the preceding trading session.

Data sourced from the FMDQ Security Exchange revealed that the drastic reduction in forex turnover at NAFEM reflects dwindling activities in the foreign exchange market.

Despite the participation of entities such as commercial banks, the Central Bank of Nigeria (CBN), oil firms, and multinationals in dollar sales, the overall transaction volume experienced a notable contraction.

Throughout the week, the forex supply at NAFEM exhibited fluctuations. It commenced with a modest supply of $116.11 million on Monday, surged to $381.92 million on Tuesday, but regressed to $117.87 million by Wednesday.

Thursday witnessed a slight recovery with supply climbing to $336.11 million.

Market analysts attributed the depreciation of the naira to intensified demand for dollars driven by speculation and individuals seeking foreign currency for various purposes including business, tourism, education, and healthcare.

The widening gap between official and parallel market rates raises concerns about potential round-tripping activities.

Despite recent CBN interventions and policy directives aimed at enhancing forex supply and curbing malpractices, challenges persist in the forex market.

The evolving dynamics underscore the need for sustained efforts to stabilize the currency and foster confidence in Nigeria’s financial ecosystem. As stakeholders monitor market developments, attention remains focused on implementing effective measures to mitigate forex volatility and sustain economic stability.

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Dollar to Naira Black Market Exchange Rate Today 19th December 2023

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New Naira notes

What is the Dollar to Naira exchange rate at the parallel market, known as the black market (Abokifx) today? As of December 19th, 2023, the dollar to naira exchange rate is 1 USD to 1235 NGN at the black market.

This means that for every one US dollar, you can exchange it for ₦1235, Investors King reports.

This digital business news platform has obtained the official dollar to naira exchange rate in Nigeria today including the Black Market rates, Bureau De Change (BDC) rate, and CBN rates.

How Much is Dollar to Naira Today in the Black Market?

This rate is subject to change depending on a variety of factors including global economic trends, political developments, and market fluctuations. However, you can buy and sell 1 USD at ₦1235 and ₦1230 as of the time of writing today.

What is the current exchange rate of the dollar to naira in the black market today?

According to Investors King, as of the time this report was filed, a dollar can be purchased at the Lagos parallel market (black market) for ₦1235 and sold for ₦1230.

Exchange Rate of Dollar To Naira in Black Market Today?

Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Selling Rate 1230
Buying Rate 1235

Central Bank of Nigeria (CBN) Naira Exchange Rates for Banks

Investors King understands that although the dollar to naira opened at N1235 per $1 in the parallel market today, the Central Bank of Nigeria (CBN) does not acknowledge the parallel market, also referred to as the black market. The CBN has instructed individuals in need of forex to approach their bank as the I&E window is the sole recognized exchange.

On Tuesday, December 19th, 2023, individuals in the black market purchased one US dollar for N1230 and sold it for N1235. This shows that the value of the Naira declined when compared to Monday, December 11th, 2023 when the local currency was exchanged at N1190 to a Dollar and a Dollar was purchased at N1180.

To stay informed about the dollar to naira exchange rate, there are several reliable sources that you can turn to. Here are some tips for staying up-to-date:

  • Check the Central Bank of Nigeria’s website: The CBN is responsible for regulating the country’s monetary policy and is a reliable source for the latest exchange rates. You can check their website regularly for updates.
  • Follow financial news outlets: Financial news outlets such as Investors King, Bloomberg, Reuters, and CNBC provide regular updates on the global currency markets, including the dollar to naira exchange rate.
  • Use online currency converters: There are a number of online currency converters that allow you to quickly and easily check the exchange rate between the dollar and the naira.
  • Follow social media accounts of financial experts: Following social media accounts of financial experts such as analysts, economists, and financial advisors can give you valuable insights into the latest trends in the currency markets.

By staying informed about the dollar-to-naira exchange rate, you can make informed decisions when buying or selling foreign currencies. Whether you are a business owner looking to trade in foreign currencies or an individual looking to invest in the currency markets, knowledge of the latest exchange rates is key to success. Keep these tips in mind and stay informed about the latest trends in the global currency markets.

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