Weaker Dollar Amid Uncertainties over New Fed Chair

 Lebanese Forex Market

Demand for the Lebanese Pound steadied over the past week on the Lebanese forex market with the value of the Lebanese Pound trading within the range of $/LP 1,513.75-1,514.25 with a mid-price of $/LP 1,514.

Foreign assets (excluding gold) recorded a year to date (y-t-d) upturn of 3.68% to $44.03B by September 2017.

The dollarization ratio of private sector deposits rose from 65.82% in December 2016 to 66.92% by the end of September 2017.

By Friday November 3, the euro appreciated against the dollar-pegged LP going from €/LBP 1,754.27 on the 27th of October to €/LBP 1,759.26, this week.

As for the Nominal Effective Exchange Rate (NEER) of the LBP, it dropped by 0.12% over the past week to stand at 112.81 points.

International Forex Market:

The dollar weakened this week amid expectations that President Trump will nominate Mr Jay Powell, over more hawkish rivals, as the next chair for The Fed. The Euro/Dollar rate stood at 1.1670 this week compared to 1.1637 last week.

 

Commodities:

Gold prices dropped from $1,282.60/ounce last week to $1,274.40/ounce this week.

 

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