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Dollar Attains Parity With Euro on Tuesday

The United States Dollar (USD) exchange rate to European common currency (Euro) was the exact same in the early hours of Tuesday for the first time in 20 years.

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US Dollar - Investorsking.com

The United States Dollar (USD) exchange rate to European common currency (Euro) was the exact same in the early hours of Tuesday for the first time in 20 years.

The Euro-USD exchange rate opened at 1.003 on Tuesday and dropped to 0.999 before moderating to 1.0036 at the time of writing.

The slowing global economy amid rising interest rates has made the United States Dollar attractive to global investors who were looking to avoid the negative impact of the projected economic recession and ensure they have in their possession operating capital for possible re-entry at lower price levels or to avoid the impact of persistent increase in borrowing costs (interest rates) in the near-term.

As shown below, the Euro-USD pair started declining on February 10, 2022 when the United States announced that Russia was planning to invade Ukraine.

The invasion, which eventually happened on February 24, has disrupted the global economy, bolstered commodity prices, and increased global risks and uncertainties. In an effort to rein in the high inflation rate, economies started raising interest rates in a move to curb escalating inflation rates.

These aggressive increases have started dragging on new investments, new job creation, consumer spending, retail sales and export orders. And financial experts are now predicting it could get worse with Russian sanctions.

Western nations are working on imposing additional oil sanctions on Russia. This, JP Morgan predicted could push oil prices above $350 a barrel and further complicate the global economy.

All the aforementioned are responsible for the increase in dollar strength against Euro and other global currencies to over 20 years high.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Dollar

U.S. Dollar Remains Pressured Ahead of FOMC Meeting, Trades Near 8-Month Low

The U.S. Dollar Index stood at 101.53, near an eight-month low of 101.51 hit on Monday.

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Naira Dollar Exchange Rate - Investors King

The United States Dollar on Tuesday extended its decline against global counterparts as the uncertainty surrounding corporate earnings amid recession concerns dragged on currency outlook.

The U.S. Dollar Index, the gauge which measures the greenback’s strength against a basket of currencies, stood at 101.53, near an eight-month low of 101.51 hit on Monday.

Against the Sterling, the U.S. Dollar lost 0.12% to $1.2415 while the Euro gained 0.05% to $1.0920, nearing its 9-month high of $1.0927 attained on Monday.

“The euro does draw a lot of attention,” said Jarrod Kerr, chief economist at Kiwibank. The eurozone “had a favorable winter ….The energy crisis that people were expecting hasn’t quite played out yet.”

Meanwhile, the Canadian dollar was last exchanged at 1.3393 per dollar following the decision of the Bank of Canada to increase the interest rate to 4.5%.

Accordingly, the U.S. dollar lost 0.06% against the Australian dollar on Thursday morning after a 0.8% gain on Wednesday after the consumer price index report showed Australian inflation rose to a 33-year high in the fourth quarter of 2022.

A check by Investors King showed that against the New Zealand dollar, the U.S. dollar was steady at $0.6480. In Asia, the Japanese yen appreciated by 0.3% to 129.21 per dollar.

The currency traders have started pricing in a 25-basis point interest rate increase for next week when the Federal Open Market Committee (FOMC) will converge in a two-day meeting to decide the interest rate.

“There are now signs the U.S. economy may be slowing in a more meaningful manner,” said economists at Wells Fargo.

“With the Fed no longer leading the charge on interest rate hikes and U.S. economic trends set to worsen, we now believe the U.S. dollar has entered a period of cyclical depreciation against most foreign currencies.”

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Black Market Rate

Dollar To Naira Black Market Exchange Rate For Today 15th January 2023

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Naira - Investors King

You can access the black market Dollar to Naira exchange rate for today, 15th January on Investors King.

This online 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 Exchange Rate Today?

Dollar to naira exchange rate today black market (Aboki dollar rate):

Investors King understands that the exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N742 and sell at N745 as of the time of filing this report.

Exchange Rate of Dollar To Naira in Black Market Today?
Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Buying Rate 742
Selling Rate 745

The local currency (abokiFx) opened at N745.00 per $1 at the parallel market otherwise known as the black market, today, Sunday, 15th January 2023, in Lagos Nigeria, after it closed at N745.00 per $1 on Saturday, 14th January 2023.

Factors Influencing Foreign Exchange Rates

Here are some of the causes of the dwindling dollar to naira exchange rate.

Inflation Rates: It is well known that inflation directly impacts black market exchange rates. If the Nigerian economy can be stabilized and inflation is controlled, the naira will benefit; however, if the naira continues to fall, it may indicate that food and other necessities are becoming more expensive daily.

Interest Rates: Another tool to keep an eye on is interest rates. If the interest rate at which banks lend money rises, it would harm the economy, causing it to contract and, as a result, the value of the naira to fall.

Government Debt: National debt can impact investor confidence and, as a result, the influx of funds into the economy. If inflows are high, the naira exchange rate will rise in favour of the naira.

Speculators: Speculators frequently impact the naira-to-dollar exchange rate. They stockpile money in anticipation of a gain, causing the naira to plummet even lower.

Conditions of Trade: Favorable trade terms will increase the value of the naira to the dollar, although Nigeria is currently experiencing a trade deficit. Everything comes from China, India, and the majority of Asian countries.

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Dollar

Dollar To Naira Black Market Exchange Rate For Today 10th January 2023

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on

Naira Exchange Rates - Investors King

You can access the black market Dollar to Naira exchange rate for today, 10th January on Investors King.

This online 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 Exchange Rate Today?

Dollar to naira exchange rate today black market (Aboki dollar rate):

Investors King understands that the exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players buy a dollar for N742 and sell at N745 as of the time of filing this report.

Exchange Rate of Dollar To Naira in Black Market Today?
Dollar to Naira (USD to NGN) Black Market Exchange Rate Today
Buying Rate 742
Selling Rate 745

The local currency (abokiFx) opened at N745.00 per $1 at the parallel market otherwise known as the black market, today, Tuesday, 10th January 2023, in Lagos Nigeria, after it closed at N747.00 per $1 on Monday, 9th January 2023.

 

Factors Influencing Foreign Exchange Rates

 

Here are some of the causes of the dwindling dollar to naira exchange rate.

Inflation Rates: It is well known that inflation directly impacts black market exchange rates. If the Nigerian economy can be stabilized and inflation is controlled, the naira will benefit; however, if the naira continues to fall, it may indicate that food and other necessities are becoming more expensive daily.

Interest Rates: Another tool to keep an eye on is interest rates. If the interest rate at which banks lend money rises, it would harm the economy, causing it to contract and, as a result, the value of the naira to fall.

Government Debt: National debt can impact investor confidence and, as a result, the influx of funds into the economy. If inflows are high, the naira exchange rate will rise in favour of the naira.

Speculators: Speculators frequently impact the naira-to-dollar exchange rate. They stockpile money in anticipation of a gain, causing the naira to plummet even lower.

Conditions of Trade: Favorable trade terms will increase the value of the naira to the dollar, although Nigeria is currently experiencing a trade deficit. Everything comes from China, India, and the majority of Asian countries.

Continue Reading
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