Lebanese Forex Market:
Demand for the Lebanese Pound in the Lebanese Forex market steadied versus the Dollar during the week ending October 16, 2015 with the exchange rate remaining within the peg range of $/LP 1,508-1,512 with a mid-price of $/LP 1,510. Foreign assets (excluding gold) at the Central Bank dropped by a monthly 0.89% to reach $38.25B at the end of September 2015. As forthe dollarization rate of private sector deposits, it slid from 65.71% in December 2014 to 64.96% by August this year.
By Friday 16th of October, 2015, 15:30 pm Beirut time, the dollar-pegged LP depreciated against the euro going from €/LP €/LP 1,706.94 one week earlier to €/LP 1,712.67, representing a 0.34% increase. The Nominal effective exchange Rate (NEER) decreased by 0.11% to 166.03 points, narrowing its year-to-date gains to 12.70%.
International Forex Market:
On a weekly basis the Euro was stronger than the “greenback”, despite the Dollar rallying in the last two sessions of the week. Accordingly, over the past week, the Euro appreciated by 0.34% against the dollar to €/$ 1.1361. In details, investors might be in a “wait and see” mode regarding the Dollar as market watchers are awaiting the Federal Reserve meeting that will convene on the 26th/27th of October. The Dollar would have waned even more if it wasn’t for the latest U.S. jobless claims figures, which reached their lowest levels since December 1973 on Thursday.
Commodities:
Gold improved during the week mainly on the back of a fluctuating Dollar and the uncertainty on the U.S. front. Hence, the price of gold increased by a weekly 2.26% to reach $1,179.96/ounce at 15:30 pm Beirut time.