|Euro / LP||1,506.30||1,513.08||-0.45%||-11.84%|
|Euro / Dollar||0.9992||1.0037||-0.45%||-11.84%|
Lebanese Forex Market
To-date, the Lebanese Pound (LBP) remained steady within the official range of USD/LBP 1,514 to 1,514.5, with a mid- price of USD/LBP 1,514.25 by August 19, 2022.
On the parallel market this week, the Lebanese national currency has fluctuated between LBP/USD 32,000 and 34,000 ending the week at LBP/USD 32,500. Nothing has changed in Lebanon since last week as the political deadlock is still occupying the Lebanese scene, amid the continuous failure of forming a new government.
As for the Euro/LBP currency pair, the Euro depreciated slightly against the dollar-pegged LBP with the currency pair going from last week €/LBP 1,513.08 to €/LBP 1,506.30 by August 26, 2022. Moreover, the Nominal Effective Exchange Rate (NEER) of the Lebanese pound slightly increased marginally by 0.36% weekly to stand at 169.21 points on August 26, 2022.
International Forex Market
This week, the Euro has lost its parity against the dollar for the first time since 2002 and closed at $0.992 by the end of this week. On the other hand, the dollar index which tracks the greenback against six major currencies has steadily gained over the past two weeks but traded 0.2% lower at 108.22 ahead of the Fed Chair Powell’s speech today. In Europe, the elevated energy prices due to shortage of the Russian gas supply, has left Europe in a very difficult situation as everyone now say “winter is coming”
Gold prices decreased by 0.55% this week, to $1745.08/ounce. Investors are cautious ahead of Federal Reserve Chair Jerome Powell’s speech at the “Jackson Hole”” meeting, which could give a hint about the size of interest rate hikes in September. In fact, higher interest rates make the dollar more attractive for investors, which bring gold price down due the negative correlation between the greenback and gold.
Crude oil prices increased sharply this week by 6.60% and reached $100.98/barrel. In fact, the US has released better than expected economic date which eased the fears of recession and boosted oil prices.