|Euro / LP||15,972.00||16,015.00||-0.27%||895.00%|
|Euro / Dollar||1.0648||1.0677||-0.27%||0.00%|
Lebanese Forex Market
The Lebanese Pound (LBP) remained steady within the new official rate of USD/LBP 15,000 by February 17, 2023.
Meanwhile on the parallel market, the Lebanese national currency continued a steady decline against the dollar that has reached an all-time low of 82,000 LBP/USD on Thursday 16th, February 2023. The average Lebanese exchange rate crumbled below the levels of last week and registered 71,900 compared to an average of 60,157 LBP/USD in the previous week, with a minimum of 64,600 LBP/USD and a maximum of 82,000 LBP/USD by the end of the week February 17, 2023.
As for the Euro/LBP currency pair, the Euro depreciated against the dollar-pegged LBP with the currency pair going from last week €/LBP 16,015 by February 10, 2023 to €/LBP 15,972 by February 17, 2023. Moreover, the Nominal Effective Exchange Rate (NEER) of the Lebanese pound added 0.53% weekly to stand at 116.74 points on February 17, 2023.
International Forex Market
This week, the US dollar traded on a positive territory amid a slight ease in inflation. Consequently, the index added 0.75% on a weekly basis and traded at 104.411 by Friday February 17, 2023.
The Euro depreciated against the dollar by 0.27% to $1.0648. Indeed, the biggest threat to the euro-area economy is no longer the energy crisis, but the European Central Bank. The largest tightening cycle in the institution’s short history is poised to push interest rates well above neutral territory, thus increasing fears of an upcoming recession in the bloc.
GBP/USD traded on a negative note this week at $1.1932, 1.08% lower from previous week, despite more than expected easing inflation in UK, standing at 10.1% by January 31, 2023, compared to 10.5% by end of 2022.
On Friday, the Yen/Dollar reached its highest level since December 20, 2022 as investors increase bets on the Federal Reserve continuing its aggressive interest rate hike campaign. Indeed, the Yen appreciated by 2.67% to stand at $134.87 by February 17, 2023, compared to the previous week.
In China, the Yuan traded higher by 1.01% standing at $6.88 by February 17, 2023. Meanwhile, the Australian dollars depreciated by 1.36% on a weekly basis to stand at 0.6823 AUD/USD by February 17, 2023.
Gold prices dropped by 2.34% to stand at $1,821.93/ ounce on February 17, 2023, compared to $1,865.57/ ounce in the previous week. In fact, gold fell as the dollar strengthened after comments from Federal Reserve officials concerning expectations of steeper rate hikes in the near future. The dollar and Treasury yields have both spiked, putting pressure on the non-interest bearing metal.
Crude oil’ prices fell by 3.32% to stand at $77.07/ barrel on February 17, 2023, compared to $79.72/ barrel in the previous week, as Russian oil producers expect to maintain current volumes of crude exports despite the government’s plan to reduce output in March. Moreover, crude oil prices slipped after US Federal Reserve officials said more rate hikes are needed to lower inflation. Indeed, higher prospects of rate hikes have boosted the US dollar, making oil more expensive for holders of other currencies, especially given the higher chances for recessionary tendencies, thus leading to a lower demand for crude oil.