| 10/03/2023 | 03/03/2023 | %Change | YTD | |
| Euro / LP | 15,886.50 | 15,948.00 | -0.39% | 889.67% |
| Euro / Dollar | 1.0591 | 1.0632 | -0.39% | -0.54% |
| NEER Index | 117.26 | 116.91 | 0.30% | -31.24% |
Lebanese Forex Market
The Lebanese Pound (LBP) remained steady within the new official rate of USD/LBP 15,000 by March 10, 2023.
After BDL’s intervention in the market through Sayrafa, the Lebanese pound reached its weekly minimum level of LBP 79,000 per USD on Friday March 3rd. Nevertheless, as Lebanon’s commercial banks reported on Thurday, that they would resume their open-ended strike on March 14, the Lebanese pound completely deteriorated throughout the day. In fact, the Lebanese pound started the day at 82,500 LBP/USD but ended at 88,000 LBP/USD.
As for the Euro/LBP currency pair, the Euro depreciated against the dollar-pegged LBP with the currency pair going from last week €/LBP 15,948 by March 03, 2023 to 15,886.5 by March 10, 2023. Moreover, the Nominal Effective Exchange Rate (NEER) of the Lebanese pound went up by 0.3% weekly to stand at 117.26 points on March 10, 2023.
International Forex Market
This week, the US dollar traded on a positive territory as Federal Reserve policymakers reported that further rate hikes will be essential to tackle inflation. Consequently, the index added 0.69% on a weekly basis and traded at 105.24 by Friday March 10, 2023.
The Euro depreciated against the dollar by -0.37% to $1.0596 amid stronger US dollar. Furthermore, the European Central Bank is expected to further increase interest rates by 50 basis points on March 16.
The British pound also depreciated against the dollar by -0.56% to stand at $1.1969. Bank of England policy maker Catherine Mann said the pound could weaken further as investors absorb the implication of plans by the US Federal Reserve and European Central Bank to raise interest rates. Catherine Mann also warned that inflation in the UK will require further interest hikes from the Bank of England (BoE).
On Friday, the dollar appreciated against the Yen by +0.67% on a weekly basis after the Bank of Japan held interest rates at record lows, and said it will continue with its very soft monetary policy in the last meeting with Governor Haruhiko Kuroda in control. Kazuo Ueda is set to take over the leadership of the central bank, and has signaled that he will maintain the BOJ’s ultra-dovish stance, at least in the near term.
In China, the Yuan depreciated against the dollar by -0.81% to 6.96 on a weekly basis as people fear that momentum could fade after the strong economic rebound. Elsewhere, the Australian dollar depreciated by -2.69% on a weekly basis to stand at 0.6588 AUD/USD by March 10, 2023. Similarly, the Canadian dollar fell by 1.73% on a weekly basis touching CAD$ 1.3833 for a US dollar amid lower oil prices. The Canadian dollar extended its decline a day after Bank of Canada put breaks on its hiking cycle in contrast to the Federal Reserve pledge to fight inflation by lifting rates higher than previously expected.
Commodities
Gold prices fell by -1.19% to stand at $1,834.4/ ounce on March 10, 2023, compared to $1,856.48/ ounce in the previous week, amid stronger dollar.
Crude oil’ prices dropped remarkably by -5.4% to stand at $75.38/barrel on March 10, 2023 compared to $79.68/barrel in the previous week as Saudi Arabia is set to supply full crude oil volumes to at least four refiners in North Asia by next month.