Dollar Down as Fed Kept Rates Unchanged   

Lebanese Forex Market:

Demand for the Dollar on the Lebanese forex market slightly slid over the past week as the value of the Lebanese pound against the dollar fell from a mid-price of $/LP 1,514 within the range of $/LP 1,513.75-1,514.25 to a mid-price of $/LP 1,513.5 within the range of $/LP 1,513 -1,514.

Foreign assets (excluding gold) of the Central Bank increased 2.20% since the beginning of the year to $36.28B by June 2016. The dollarization ratio of private sector deposits fell from 64.88% in December 2015 to 64.73% in May 2016.

By Friday 29th  of July, 2016, 2:00 pm Beirut time, the euro appreciated against the dollar-pegged LP as the exchange rate rose by 0.68%, over the last week, going from €/LP 1,662.17 to €/LP 1,673.48. As for the Nominal Effective Exchange Rate (NEER) it fell by 0.18% to reach 167.07 points.  

International Forex Market:

It is no surprise to see the dollar lose ground against the euro this week. In fact, the euro dollar exchange rate rose from €/$1.1026 to €/$1.1101. The Federal Reserve kept interest rates unchanged on Thursday, noting that although the US economy has improved, fears from the Brexit repercussions are still present.

Commodities:

Over the week, gold saw its price rise from $1,325.38/ounce to $1,335.21/ounce this Friday, as it is negatively correlated to the value of the US dollar.

 

 

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