Forex

Dollar Builds Toward Six-week High Ahead of U.S. Jobs Data

Published

6 years ago

October 5, 2018

Dollar Builds Toward Six-week High Ahead of U.S. Jobs Data

The dollar edged toward a six-week high on Friday before monthly U.S. jobs data that investors hope will shed light on how much longer the Fed’s aggressive rate-hiking cycle will continue.

The greenback is outperforming other major currencies as the U.S. economy continues to grows strongly while recent data in other large economies, including the euro zone, has come in below expectations.

Investors are watching for signs of increasing U.S. inflation as companies including Amazon (AMZN.O) raise minimum wages. Friday’s non-farm payrolls release for September will give new indications of wage growth and labor market strength.

The dollar index .DXY, which measures its performance against a basket of six currencies, was 0.1 percent higher on the day at 95.804.

Private payrolls data came in stronger than forecast on Thursday, pushing the yield on the benchmark 10-year U.S. Treasury note US10YT=RR to its highest levels since May 2011.

“We have downplayed the relevance of the U.S. labor market report for the dollar … but the data might become more significant again now there is debate over how much longer the [Fed] rate hike cycle will continue,” said Antje Praefcke, a currency strategist at Commerzbank in Frankfurt.

The U.S. central bank foresees another interest rate hike in December, three more next year, and one increase in 2020.

Fed Chairman Jerome Powell on Wednesday talked up the U.S. economy, saying that the United States is on the verge of a “historically rare” era of ultra-low unemployment and tame prices.

That spooked investors and caused U.S. Treasury yields and the euro/dollar currency pair to breach key technical levels.

AUSSIE FALLS TO MULTI-YEAR LOW

The Australian dollar AUD=D4, often viewed as a barometer of risk appetite, slipped 0.3 percent to $0.7054, a 32-month low, as U.S. yield spreads continued to widen, pressuring stock markets and risk appetite around the world.

The Aussie, extending losses into a fourth straight session, has now fallen 2.1 percent this month.

The euro EUR=EBS edged down 0.1 percent to $1.1497 after brushing a six-week low of $1.1463 during Thursday’s session.

The dollar will continue to strengthen against the euro as well as the yen, with the common currency likely slipping back below the psychologically-significant $1.15 handle, said Yukio Ishizuki, senior currency strategist at Daiwa Securities.

The euro is down about 0.8 percent against the dollar this month.

Sterling rose to a 3-month high versus the euro on Friday after European Union Brexit negotiators said that a divorce deal with Britain was “very close”.

The pound rose to 88.14 pence EURGBP=D3, its highest since 9 July, on the report which cited two diplomatic sources.

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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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Forex

Yen Hits 34-Year Low Against Dollar Despite Bank of Japan’s Inaction

Published

2 days ago

April 26, 2024

Samed Olukoya

The Japanese yen plummeted to a 34-year low against the US dollar, sending shockwaves through global financial markets.

Despite mounting pressure and speculation, the Bank of Japan (BOJ) chose to maintain its key interest rate.

The yen’s relentless slide, extending to 0.7% to 156.66 against the dollar, underscores deep concerns about Japan’s economic stability and the efficacy of its monetary policies.

BOJ Governor Kazuo Ueda’s remarks at a post-meeting news conference did little to assuage fears as he acknowledged the impact of foreign exchange dynamics on inflation but downplayed the yen’s influence on underlying prices.

Investors, already on edge due to the yen’s dismal performance this year, are now bracing for further volatility amid speculation of imminent intervention by Japanese authorities.

The absence of decisive action from the BOJ has heightened uncertainty, with concerns looming over the potential repercussions of a prolonged yen depreciation.

The implications of the yen’s decline extend far beyond Japan’s borders, reverberating across global markets. The currency’s status as the worst-performing among major currencies in the Group of Ten (G-10) underscores its significance in the international financial landscape.

Policymakers have issued repeated warnings against excessive depreciation, signaling a commitment to intervene if necessary to safeguard economic stability.

Finance Minister Shunichi Suzuki reiterated the government’s readiness to respond to foreign exchange fluctuations, emphasizing the need for vigilance in the face of market volatility.

However, the lack of concrete action from Japanese authorities has left investors grappling with uncertainty, unsure of the yen’s trajectory in the days to come.

Market analysts warn of the potential for further downside risk, particularly in light of upcoming economic data releases and the prospect of thin trading volumes due to public holidays in Japan.

The absence of coordinated intervention efforts and a clear policy stance only exacerbates concerns, fueling speculation about the yen’s future trajectory.

The yen’s current predicament evokes memories of past episodes of currency turmoil, prompting comparisons to Japan’s intervention in 2022 when the currency experienced a similar downward spiral.

The prospect of history repeating itself looms large, as market participants weigh the possibility of intervention against the backdrop of an increasingly volatile global economy.

As Japan grapples with the yen’s precipitous decline, the stakes have never been higher for policymakers tasked with restoring stability to the currency markets. With the world watching closely, the fate of the yen hangs in the balance, poised between intervention and inertia in the face of unprecedented challenges.

Naira

Dollar to Naira Black Market Today, April 25th, 2024

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

3 days ago

April 25, 2024

Samed Olukoya

Naira to Dollar Exchange- Investors King Rate - Investors King

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 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 N1,260 and sell it at N1,250 on Wednesday, April 24th, 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: N1,300
Selling Rate: N1,290

Naira

Dollar to Naira Black Market Today, April 24th, 2024

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

4 days ago

April 24, 2024

Samed Olukoya

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 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 N1,250 and sell it at N1,240 on Tuesday, April 23rd, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined slightly 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.