Connect with us
deals book
Advertisement
Polaris bank
Advertisement
Oando
Advertisement
Alpha
Advertisement
Hotflex
Advertisement
Binance
Advertisement
Advertisement
UBA
Advertisement
Patricia
Advertisement
Access bank
Advertisement
app

Currencies

Dollar and yen gain over COVID-19 panic and economic outlook 

The dollar traded at $1.1234 per euro on Thursday,  yen also increased to 106.79 against the dollar, while Sterling went down to $1.2533

Published

on

Dollar and yen gain over Covid-19 panic and economic outlook 

The dollar and the yen rose higher on Thursday. This was as a result of the possibilities of a rise in COVID-19 cases and a second wave of the pandemic prompting increased demand for the currencies.

The British pound also traded in a narrow range ahead of a Bank of England meeting in which policymakers are expected to stretch out quantitative easing especially given the state of the economy as well as volatile trade negotiations with the European Union.

Junichi Ishikawa, a senior foreign-exchange strategist at IG Securities in Tokyo explained that the “Upside for U.S. stocks and other risk assets has dwindled because more people are talking about the second wave of virus infections. This supports the dollar and the yen because they are both safe to havens. The pound has its own problems. The British economy is not in good shape and a hard Brexit remains a risk.”

The dollar traded at $1.1234 per euro on Thursday in Asia following a 0.2% gain in the previous session. The yen also increased to 106.79 against the dollar, while the Sterling went down to $1.2533 for its third day of losses.

READ MORE: British Pound plunges, as PM gets admitted to Intensive care

The cases have also risen in many states within the U.S. as well as the underlying travel restrictions. The situation being witnessed in both the US and China has made people especially concerned about the dangers of reopening the economy or easing restrictions too fast before a vaccine is found.

Britain, on the other hand, is seeking a free trade agreement with the EU, which it left earlier this year in January. The challenge is that owing to the little progress that had been made, there are worries that both will not reach an agreement before the end of 2020.

Hotflex
Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Currencies

Naira falls at NAFEX window as dollar supply drops significantly by 78%

Naira depreciated against the dollar to close at N410.67/$ on Monday, 10th May 2021, representing a 34 kobo drop from N410.33/$1 recorded on Friday, 7th May 2021.

Published

on

Monday, 10th May 2021: The exchange rate between the naira and the US dollar closed at N410.67/$1 at the Importers and Exporters window, where forex is traded officially.

Naira depreciated against the US dollar to close at N410.67 to a dollar on Monday, 10th May 2021, representing a 34 kobo drop when compared to N410.33/$1 that was recorded on Friday, 7th May 2021.

Meanwhile, the naira remained stable at the parallel market as it closed at N483/$1. This was the same rate that was recorded on Friday, May 7, 2021, as the dollar supply dropped significantly by 77.7%.

Trading at the official NAFEX window

The naira depreciated against the US dollar at the Investors and Exporters window on Monday to close at N410.67/$1, representing a 34 kobo drop when compared to the N410.33/$1 that was recorded on Friday.

  • The opening indicative rate closed at N410.22 to a dollar on Monday, 10th May 2021, representing a 12 kobo gain when compared to the N410.34/$1 recorded on Friday.
  • Also, an exchange rate of N422 to a dollar was the highest rate recorded during intra-day trading before it settled at N410.67/$1. It, however, sold for as low as N400/$1 during intra-day trading.
  • Forex turnover at the Investor and Exporters (I&E) window dropped significantly by 77.7% on Monday, 10th May 2021.
  • A cursory look at the data tracked by Nairametrics from FMDQ showed that forex turnover declined massively from $146.52 million recorded on Friday, 7th May 2021 to $32.61 million on Monday, 8th May 2021.

Cryptocurrency watch

Bitcoin, the world’s most popular cryptocurrency, slumped by 5.29% as of Monday evening to trade at $55,682.55.

  • The world’s largest cryptocurrency continues to trade much lower than April’s high of $65,000, which came in anticipation of Coinbase’s direct listing on Nasdaq.
  • While Bitcoin has remained relatively stable, the altcoin market has flourished with the likes of Ethereum more than doubling in 16 days.
  • Recently, American multinational investment bank Morgan Stanley began offering BTC custody to clients. Goldman Sachs also recently announced that clients would be able to invest in Bitcoin.
  • Ethereum, the world’s second-largest cryptocurrency, surges above $4,000 for the first time ever as it traded at $4,213.46 before slumping to $3,897.09.

Crude oil price stalls

OPEC’s crude oil production is estimated to have increased to a 3-month high of 24.96 million barrels per day (BPD) in April.

  • Brent Crude dropped by 0.31% on Monday evening to close at $66.1 compared to its closing price of the previous day’s trading session.
  • The WTI dropped by 0.29% on Sunday to close at $64.73, Bonny light crude dropped by 0.16% to close at $66.71, while the OPEC basket dropped by 2.39% to close at $68.20.
  • Oil prices recorded a weekly gain against the backdrop of optimism over a global economic recovery, despite the Covid-19 crisis in India which is biting hard.
  • In China, data showed export growth accelerated unexpectedly in April while a private survey pointed to strong expansion in service sector activities.

External reserve

Nigeria’s external reserve plunged for the 14th consecutive day on Friday, 7th May 2021 as it dropped by about $18 million to close at $34.72 billion.

  • The nation’s foreign reserve declined from $34.74 billion recorded as of Thursday, 6th May 2021 to $34.72 billion on Friday, representing a 0.05% decline.
  • Nigeria’s foreign reserve has dipped $537.36 million since 16th April 2021 to date.
  • Nigeria will hope to boosts its foreign reserve position as oil prices continue to rally high and the CBN extends its naira 4 dollar initiative.

Continue Reading

Currencies

Naira appreciates across forex markets as dollar supply improves by 38%

The naira appreciated at the parallel market to close at N483/$1 on Friday, representing a N2 gain compared to N485/$1 recorded on Thursday.

Published

on

FOREX, Dollar scarcity worsens as exchange rate falls to N472/$1 at black market , Naira falls to N460/$1 as CBN intervention fails to contain speculation

Friday, 7th May 2021: The exchange rate between the naira and the US dollar closed at N410.33/$1 at the Importers and Exporters window, where forex is traded officially.

Naira appreciated against the US dollar to close at N410.33 to a dollar on Friday, 7th May 2021, representing a 67 kobo gain when compared to N411/$1 that was recorded on Thursday, 6th May 2021.

Also, the naira appreciated at the parallel market as it closed at N483/$1, representing a N2 gain when compared to N485/$1 that was recorded on Thursday, May 6, 2021, as forex market liquidity improved by 38%.

Trading at the official NAFEX window

The naira appreciated against the US dollar at the Investors and Exporters window on Friday to close at N410.33/$1, representing a 67 kobo gain when compared to the N411/$1 that was recorded on Thursday.

  • The opening indicative rate closed at N410.34 to a dollar on Friday, 7th May 2021, representing a 2 kobo gain when compared to the N410.37/$1 recorded on Thursday.
  • Also, an exchange rate of N437.41 to a dollar was the highest rate recorded during intra-day trading before it settled at N410.33/$1. It, however, sold for as low as N400/$1 during intra-day trading.
  • Forex turnover at the Investor and Exporters (I&E) window rose by 37.8% on Friday, 7th May 2021.
  • A cursory look at the data tracked by Nairametrics from FMDQ showed that forex turnover increased from $106.34 million recorded on Thursday, 6th May 2021 to $146.52 million on Friday, 7th May 2021.

Cryptocurrency watch

Bitcoin, the world’s most popular cryptocurrency, slumped by 1.52% as of Sunday evening to trade at $57,951.21.

  • An amount of 12,354 bitcoins was recently withdrawn from Coinbase totalling over $700 million. The massive outflow could be related to institutional investors.
  • Large financial institutions have started offering bitcoin custody services to their clients.
  • Recently, American multinational investment bank Morgan Stanley began offering BTC custody to clients. Goldman Sachs also recently announced that clients would be able to invest in bitcoin.
  • Ethereum recorded a growth of 1.43% to close at $3,923.43, reaching an all-time high.
  • Meanwhile, payments giant Visa and financial services provider TALA have partnered to boost cryptocurrency adoption in emerging markets.
  • This partnership is aimed at easing the process of converting, storing and using cryptocurrencies by underbanked consumers.

Crude oil price stalls

Crude oil prices moved towards $70 as the oil markets remain optimistic with strong bullish sentiments as summer approaches.

  • Brent Crude rose by 0.28% on Sunday evening to close at $68.28 compared to its closing price of the previous day’s trading session.
  • The WTI rose by 0.29% on Sunday to close at $64.90, Bonny light crude dropped by 0.43% to close at $66.82, while the OPEC basket rose by 2.29% to close at $68.20.
  • Oil prices recorded a weekly gain against the backdrop of optimism over a global economic recovery, despite the Covid-19 crisis in India which is biting hard.
  • In China, data showed export growth accelerated unexpectedly in April while a private survey pointed to strong expansion in service sector activity.

External reserve

Nigeria’s external reserve plunged for the 13th consecutive day on Thursday, 6th May 2021 as it dropped by about $22 million to close at $34.74 billion.

  • The nation’s foreign reserve declined from $34.76 billion recorded as of Wednesday, 5th May 2021 to $34.74 billion on Thursday, representing a 0.63% decline.
  • Nigeria’s foreign reserve has dipped $519.36 million since 16th April 2021 to date.
  • Nigeria will hope to boosts its foreign reserve position as oil prices continue to rally high and the CBN extends its naira 4 dollar initiative.

Continue Reading

  





Nairametrics | Company Earnings

Access our Live Feed portal for the latest company earnings as they drop.