Greenback Kept Improving against the Euro

Euro / LP1940.911948.14-0.37%
Euro / Dollar1.28751.2923-0.37%
NEER Index**136.53136.010.38%5.79%


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 0.76% from $37.77B by July to $38.05B by end-August. Meanwhile, the dollarization rate of private sector deposits stood at 66.08% in July compared to 66.13% in December 2013.

The greenback remained on its uptrend against the euro, as the Federal Reserves in the US increased its estimate for its target interest rate. Thus, the euro lost 0.37% against the dollar, closing at €/$ 1.2875 on Friday.

The dollar, which was boosted by a rise in theforecasted federal funds rate, lowered the demand for gold, triggering a 1.23% weekly decline in its price from $1,240.49/ounce last week to $1,225.19/ounce on Thursday.

By Friday September 19th, 2014, 12:30 pm Beirut time, the dollar-pegged LP appreciated against the euro going from €/LP 1,948.14 to €/LP 1,940.91. The Nominal effective exchange Rate (NEER) added 0.38% to 136.53 points, with a 5.79% gain since year-start.

Leave a Reply

Your email address will not be published. Required fields are marked *