On Monday, the U.S. dollar weakened slightly, with the Dollar index down 0.25% to 104.24 as Treasury yields pulled back and Wall Street sentiment remained positive.

However, this retreat may be short-lived, as several factors on the economic calendar this week could trigger a bullish reversal in the foreign exchange (FX) space.

One key catalyst is the Federal Reserve’s semi-annual monetary policy report to Congress. Fed Chairman Jerome Powell is scheduled to speak on Tuesday and Wednesday, discussing recent economic developments and prospects for the future.

It is expected that Powell will take a hawkish stance, laying the groundwork for a higher peak rate in response to upside inflation risks.

While economic data from late 2022 suggested that price pressures were abating, recent reports have shown the opposite. Inflationary forces remain stubbornly strong, buoyed by resilient consumer spending and tight labor markets.

Several measures of price indices over different time horizons indicate that the central bank may not be able to achieve its 2% inflation target for the foreseeable future.

Powell’s testimony may open the door to bigger rate hikes, cementing calls for the Fed to raise borrowing costs by 50 basis points at its March meeting and pushing expectations for the terminal rate closer to 6.0%.

This scenario could be quite bullish for the U.S. dollar, signaling a shift in monetary policy that would likely support the currency.

Investors will be watching Powell’s remarks closely, as any indication of a more aggressive rate-hiking cycle could prompt a surge in demand for the U.S. dollar. While the current retreat may be a result of short-term market dynamics, the outlook for the currency could shift rapidly in response to the Fed’s policy decisions.

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.”

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.

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.

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.