Forex

Dollar Drops on Yellen Comments, China Shares Rise

Published

7 years ago

January 20, 2017

Dollar Drops on Yellen Comments, China Shares Rise

The dollar weakened after Janet Yellen said it’s prudent for the Federal Reserve to gradually adjust policy over time, while Chinese equities extended gains as the world’s second-largest economy grew faster than forecast. Gold climbed for a second day.

The greenback slipped against major peers after the Fed chief’s speech. The Shanghai Composite Index rose the most in almost two weeks as China’s gross domestic product accelerated for the first time in two years in the final quarter of 2016. Japan’s Topix index swung within a half-percentage-point range, while equities from Hong Kong to Jakarta slipped. Gold headed for a fourth straight weekly advance as investors await the opening days of Donald Trump’s presidency.

Rallies in the dollar and equities are easing this week before Trump is sworn in as the 45th American president, with investors growing increasingly anxious for indications the administration will follow through on pro-growth campaign promises. Legendary billionaire investor George Soros said the euphoria among stock investors since Trump’s victory will end as uncertainty takes over. The Dow Jones Industrial Average has churned in its tightest range ever over the past month.

“It’s clear that investors have reached a level where they are prepared to wait and see what the Trump administration has to offer,” said Ric Spooner, chief market analyst at CMC Markets Asia Pacific Ltd. in Sydney.

In a speech at the Stanford Institute for Economic Policy just a day before Trump’s inauguration in the U.S., Yellen argued that the Fed wasn’t behind the curve in containing inflation pressures but nevertheless can’t afford to allow the economy to run too hot. In a separate speech on Wednesday, Yellen said the Fed was close to achieving its goals of full employment and stable prices. The odds of another Fed rate hike as soon as May have risen to 50 percent from 42 percent a day ago, futures contracts show.

China’s economic data cemented an economic stabilization that’s giving leaders a buffer as they transition to neutral policy and prepare for potential trade tensions with Trump. GDP increased 6.8 percent in the three months through December from a year earlier, compared with a 6.7 percent median estimate in a Bloomberg survey.

Here are the main moves in markets:

Currencies

The Bloomberg Dollar Spot Index retreated 0.3 percent as of 12:41 p.m. in Tokyo, after gaining as much as 0.1 percent earlier. The gauge is down 0.2 percent for the past five days, heading toward its fourth straight weekly loss. It touched the highest level in more than a decade earlier this month.
The yen added 0.2 percent to 114.60 per dollar, wiping out a decline of 0.2 percent and almost reversing a loss for the week. The Australian dollar climbed 0.3 percent, also erasing earlier losses.

Stocks

The MSCI Asia Pacific Index rose 0.3 percent, with about 500 stocks declining and 360 advancing.
The Topix index fell as much as 0.2 percent and climbed as much as 0.3 percent. The gauge is headed for its fourth weekly decline in the past five weeks.
The Shanghai Composite gained 0.5 percent. Hong Kong’s Hang Seng index fell 0.7 percent.
Australia’s S&P/ASX 200 Index slipped 0.5 percent, heading toward the biggest weekly decline since early December.
Futures on the S&P 500 Index rose 0.1 percent. The underlying cash index fell 0.4 percent to the lowest in two weeks on Thursday. The Dow declined for a fifth straight day, the longest losing streak since Trump’s election victory.

Commodities

Gold rose 0.3 percent to $1,208.09 an ounce, on course for a fourth weekly climb. It’s up 0.9 percent this week, touching the highest level since November.

Bonds

The yield on 10-year Treasuries fell two basis points to 2.45 percent, retreating after a two-day rally.

Up Next

Naira Drops to 498 as CBN Resumes Dollar Sales

Don't Miss

CBN Resumes Sales of Forex to BDCs

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.

Comments

Naira

Black Market Dollar Rate Reaches ₦1,380 Today, May 3rd, 2024

US dollar to Nigerian Naira exchange rate as of May 3rd, 2024 at the black market stood at 1 USD to ₦1,380

Published

10 hours ago

May 3, 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 3rd, 2024 stood at 1 USD to ₦1,380.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,350 and sold it at ₦1,340 on Thursday, May 2nd, 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.

How much is dollar to naira today in black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

Buying Rate: ₦1,380
Selling Rate: ₦1,370

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.

Naira

Dollar to Naira Black Market Today, May 2nd, 2024

As of May 2nd, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,350 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

20 hours ago

May 2, 2024

Samed Olukoya

As of May 2nd, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,350 NGN in the black market, also referred to as the parallel market or Aboki fx.

For those engaging in currency transactions in the Lagos Parallel Market (Black Market), buyers purchase a dollar for N1,310 and sell it at N1,300 on Monday, April 29th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined when compared to today’s rate below.

This black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

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

Kindly be aware that the Central Bank of Nigeria (CBN) does not acknowledge the existence of the parallel market, commonly referred to as the black market.

The CBN has advised individuals seeking to participate in Forex transactions to utilize official banking channels.

Black Market Dollar to Naira Exchange Rate

Buying Rate: N1,350
Selling Rate: N1,340

Forex

Yen’s Plunge Persists Despite Japan’s Late New York Trading Intervention

Published

23 hours ago

May 2, 2024

Samed Olukoya

Japan’s attempts to shore up the yen faced yet another setback as the currency continued its downward spiral despite a late intervention in New York trading.

Despite efforts by Japanese authorities to stem the yen’s decline, traders remained unfazed, indicating a growing skepticism towards the efficacy of such measures.

The yen, which had initially weakened as much as 1.1% against the dollar during Asia trading, stubbornly clung to its downward trajectory, inching closer to levels seen before the suspected intervention.

Speculations ran rife among traders regarding Japan’s involvement in the currency market after witnessing abrupt fluctuations in the yen’s value during the final stretch of the US trading session.

This recent development underscores a deepening challenge for Japanese policymakers grappling with the yen’s persistent depreciation.

Despite their best efforts, the market sentiment appears to be increasingly immune to intervention tactics, casting doubts on the effectiveness of such measures in the long run.

Shoki Omori, chief desk strategist at Mizuho Securities Co., weighed in on the situation, remarking, “Japan’s finance ministry likely intervened but couldn’t break 152, where investors used to be cautious.”

He further noted, “Now that authorities are seen as having stepped in for a second time but gave the impression that they cannot stop the yen cheapening trend alone, market participants will likely feel more comfortable to short yen.”

The prevailing sentiment among traders suggests a growing consensus that Japan’s interventions may be insufficient to halt the yen’s depreciation trend.

Despite the authorities’ concerted efforts, the currency’s plunge persists, signaling a broader challenge for policymakers in navigating the complexities of the global currency market.

As the yen’s decline continues unabated, market participants remain on high alert, bracing for further volatility in the days ahead.

The inability of intervention measures to reverse the currency’s downward trajectory raises questions about the effectiveness of traditional policy tools in an increasingly interconnected and unpredictable financial landscape.

In the face of mounting challenges, Japanese authorities may find themselves compelled to explore alternative strategies to address the yen’s persistent weakness.

Whether through unconventional policy measures or coordinated efforts with global counterparts, finding a sustainable solution to stabilize the yen remains a pressing priority for policymakers amid evolving market dynamics.