Euro Rises during the Week Ending 11 October after 13 Weeks of Decline


Euro / LP1910.001903.970.32%
Euro / Dollar1.26701.26300.32%
NEER Index**138.73138.88-0.11%7.49%

Demand for the dollar steadied over the prior week as reflected by the Lebanese pound’s peg against the dollar that remained at $/LP 1,510-1,514 with a mid-price of $/LP 1,512, since last week. Foreign assets (excluding gold) at the Central Bank rose by a monthly 0.97% from $38.05B by August to $38.42B by end-September. Meanwhile, the dollarization rate of private sector deposits stood at 66.08% in July compared to 66.13% in December 2013. Some correction took place on the Euro during the week following 13 weeks of free fall of the European currency. Hence, the euro gained 0.32% against the dollar, ending the week at €/$ 1.2670. Fearing that the global economy might be expecting more stimulus bolstered demand for a store of value. This led gold to undergo its biggest weekly rise since June, where its price went from $1,213.30/ounce last Thursday, to $1,223.75 this week. By Friday October the 10th, 2014, 12:30 pm Beirut time, the dollar-pegged LP depreciated against the euro going from €/LP 1,903.97 to €/LP 1,910.00. The Nominal effective exchange Rate (NEER) dropped by 0.11% to 138.73 points, with a 7.49% gain since year-start.

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