Trump’s Fed Criticism Weighed on the Dollar

20/07/2018 13/07/2018 %Change YTD
Euro / LP            1,755.33 1,751.82 0.20%
Euro / Dollar 1.1644 1.1621 0.20%
NEER Index** 115.62 115.45 0.15% 4.24%

 

Lebanese Forex Market

The Lebanese Pound traded within the range of $/LP 1,514-1,514.5 against the dollar with a mid-price of $/LP 1,514.25 by the week ending July 20th, at the same range as last week.

The peg continues to be supported by the Central Bank’s solid foreign assets, which reached $44.16 billion in June 2018.

The dollarization ratio of private sector deposits grew from 65.84% in December 2017 to 68.35% in May 2018.

Over the past week, the Euro appreciated against the dollar-pegged LP going from €/LBP 1,751.82 to

 €/LBP 1,755.33 to this week.

As for the Nominal Effective Exchange Rate (NEER) of the LBP, it recorded a 0.15% weekly rise to reach 115.62 points.

International Forex Market

The U.S. dollar fell on Friday after U.S. President Donald Trump said in an interview on CNBC that he does not approve of how the Fed is approaching monetary policy. The Fed raised interest rates twice this year and is expected to raise rates at least once more before the end of the year.

Commodities

Gold prices retreated over the week, from $1,241.58/ounce last week to $1,223.63/ounce this week.

 

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