| 05/01/2024 | 28/12/2023 | %Change | YTD | |
| Euro / LP | 16,375.50 | 16,588.50 | -1.28% | -1.28% |
| Euro / Dollar | 1.0917 | 1.1059 | -1.28% | -1.28% |
| NEER Index | 241.98 | 240.87 | 0.46% | 0.46% |
Lebanese Forex Market
The Lebanese Pound (LBP) remained steady within the new official rate of USD/LBP 15,000 by January 05, 2024.
The Lebanese exchange rate has been hovering consistently around 89,700 USD/LBP over the past month. It is important to note that the Lebanese currency has showed stability recently though it is not stable as uncertainty and worries are still looming with no recovery plan has been put on table to solve the ongoing financial crisis in the country.
As for the Euro/LBP currency pair, the Euro depreciated against the dollar-pegged LBP with the currency pair going from last week €/LBP 16,588.50 to €/LBP 16,375.50 by January 05, 2024. The Nominal Effective Exchange Rate (NEER) of the Lebanese pound increased by 0.46% standing at 241.98 points on January 05, 2024.
International Forex Market
The USD Index (DXY) recorded an uptick of 1.44% in the first week of 2024 standing at 102.69 on Friday January 05, 2024 up from last week 101.229. the upsurge is supported by the first big news of this year concerning interest rate cuts which added an optimistic twist in the markets.
The Euro depreciated against the dollar by 1.40% over the course of the week and reached a low figure of EUR/USD 1.0904. The stronger US Dollar (USD) and higher inflation in December for the Eurozone pushed the euro currency lower this week.
The British Pound depreciated against the Dollar by 0.50% to reach GBP/USD 1.2666 by January 05, 2024 as investors seems adopting a cautious stance following the December nonfarm payrolls data from the US.
For other currencies in Europe, the USD/CHF edged higher by 0.83% by the end of this week to stand at USD/CHF 0.8514 on Friday January 05, 2024. Elsewhere, the USD/CNY and USD/JPY pair appreciated respectively by 0.65% and 2.60% to stand at USD/CNY 7.154 and USD/JPY 145.07 on Friday January 05, 2024. Furthermore, the USD/CAD pair appreciated by 0.99% to stand at USD/CAD 1.3360 by Friday January 05, 2024, while the AUD/USD saw a decrease by 1.98% to stand at 0.6694 by the end of this week.
Commodities
Gold price fell this week to $2,042.64/ounce amid the likelihood of rate cuts from the Fed, especially following the release of the FOMC minutes recently. However, uncertainty surrounding the timing of the Fed’s rate cut announcement may contribute to higher volatility in the gold price.
Crude oil prices settled slightly lower on Friday January 05, 2024 and stood at $78.23/barrel as the US data showed a massive weekly rise in domestic gasoline supplies. Furthermore, oil prices shook off from the shutdown of Libya‘s largest oil field and rising tensions around the Israel-Hamas war in the middle east.