Forex

Dollar Reverses Drop Before Fed Minutes, Data as Risk-Off Fades

Published

7 years ago

July 5, 2017

Dollar Reverses Drop Before Fed Minutes, Data as Risk-Off Fades

The Bloomberg Dollar Spot Index reversed early losses on a move fueled by the greenback’s rally versus the yen as risk sentiment improved across markets.

As Treasuries erased their initial drop, the dollar rose to its strongest level versus the yen since May 16 at 113.59, on a firm rebound from its 112.83 Asia-session low. Weakness early on came as geopolitical concerns were at the forefront of traders’ minds and demand for safer assets prevailed. Most European stock markets started on a positive note, supporting a rally in euro-yen, before erasing their gains.

Strong exporter supply near 113.50 caused the dollar’s rally versus the Japanese currency to lose momentum, according to traders in Europe and Asia. A close above the daily trendline resistance at 113.36 may open room for a test of the May 11 high at 114.37 as momentum studies signaled the move has legs. DeMark TD Sequential offered a note of caution as a sell setup series might be completed on Thursday, suggesting short-term losses.

Investors will focus on U.S. durable goods and factory orders data before the release of the minutes of the Federal Reserve’s June meeting. While traders will keep an eye on any signs regarding the timing of balance sheet reduction, as that may delay the timing of the next rate hike, they will also look for clues on whether an increased number of policy makers were concerned over poor inflation growth.

Should most Fed officials reflect Chair Janet Yellen’s view that they can look past inflation numbers and note improved financial conditions, and given the latest comments by policy makers over equity market strength, investors may need to move closer to the Fed’s dot plot.

Dollar’s broad recovery weighed on the euro, which failed to hang on to gains and traded as low as 1.1318 after European Central Bank Executive Board Member Benoit Coeure’s comments that the ECB hasn’t discussed policy changes yet
- These comments add onto recent ones that came as an attempt to ease the effect of Mario Draghi’s speech in Portugal, which was seen as hawkish, and possibly a game changer as far as ECB monetary policy is concerned
- North Korea troubles, U.S. data and G-20 summit this week may keep vol term structure inverted
U.K. services PMI came close to expectations and had little effect on sterling, which remained defensive
- Cable was little changed at 1.2919 versus a 1.2894 day low; demand from leveraged investors to fade dips is strong on increased rate-hike odds, said the traders, who asked not to be identified as they weren’t authorized to speak publicly
- BOE’s Saunders says U.K. households should prepare for tighter policy “at some point” in an interview with the Guardian newspaper published on its website

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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.

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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

1 day 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

2 days 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

2 days 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.