Gold Price Climbed $1,800 Levels Driven by Weaker Dollar Momentum

Euro / LP1,584.451,565.781.19%-7.27%
Euro / Dollar1.05101.03871.19%-7.27%
NEER Index170.27171.13-0.50%13.61%

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 December 01, 2022.

Meanwhile, on the parallel market this week, the Lebanese national currency has been oscillating around 40,970 LBP/USD with a minimum of 40,350 and a maximum of 41,500. The prolonged inactivity on the political and reforms levels is having a severe impact on the national currency as well as higher pressure on the Lebanese pound. Further, Central Bank of Lebanon seems at least the one trying to manage the situation through declaring entering the process of unifying the multiple exchange rates and changing banks ‘withdrawal rates for circulars 151 and 158 to 15,000 LBP/USD instead of 8,000 LBP/USD.

As for the Euro/LBP currency pair, the Euro appreciated against the dollar-pegged LBP with the currency pair going from last week €/LBP 1,565.78 by November 25, 2022 to €/LBP 1,584.45 by December 02, 2022. Moreover, the Nominal Effective Exchange Rate (NEER) of the Lebanese pound decreased slightly by 0.50% weekly to stand at 170.27 points on December 02, 2022.

International Forex Market

On Friday, the US dollar recorded further weakening against its major competitors, as the dollar index was trading 1.38% lower compared to last week at 104.54.

The broad-based selling pressure surrounding the dollar currency fueled other currency rallies this week. As the Fed signaled softer rate hikes in early December, the Euro appreciated against the dollar by 1.19% to $1.0510. Same for the British pound, which has maintained its confident momentum this week and registered gains of 1.26% compared to last week at $1.2258.

Elsewhere, Japanese currency dropped below JPY/USD 134 and reached JPY/USD 133.82 by Friday as the Japanese Yen resumed its uptrend amid narrowing policy divergence between the Federal Reserve and the Bank of Japan. Meanwhile, the Australian currency slightly increased by 1.10% to reach $0.6816 on December 02, 2022, compared to last week at $0.6742.

Furthermore, this week, the Chinese currency traded in positive territory and edged lower against the dollar on Friday at CNY/USD 7.0235, first weekly gain in two years driven by expectations of a slower pace in U.S rate hikes and China’s gradual exit from its zero Covid19 policy. In addition, the Canadian currency struggled this week due to its increasingly close correlation with the US dollar as it depreciated by 0.67% on reduced bets of a big hike by the Bank of Canada to reach 1.3436 on December 02, 2022.


Major Commodity prices surged across the board with everything from metals to energies scoring gains after the Fed Chairman statement regarding slower pace for rate hikes this month. In turn, Gold prices jumped by 2.85% to stand at $1,802.34/ounce on December 02, 2022 compared to $1,752.48/ ounce last week, on the back of a more dovish environment and weaker dollar.

As for the crude oil, prices recorded biggest weekly gain in almost two months as China is set to ease its Covid restrictions’ at a time the U.S Government would pause sales from its strategic petroleum reserves, which added to the upward pressure on oil prices.

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