Dollar Strengthens with Fed Interest Rates Talks
Lebanese Forex Market
Demand for the dollar on the Lebanese forex market remained constant over the past 2 weeks , where the value of the Lebanese pound against the dollar stood at $/LP 1,514-1,514.50 with a mid-price of $/LP 1,514.25.
Foreign assets (excluding gold) of the Central Bank increased 9.81% since the beginning of the year to $40.73B by August 2016. The dollarization ratio of private sector deposits fell from 64.88% in December 2015 to 64.87% in July 2016.
By Friday the 23rd of September 2016, the euro slightly depreciated against the dollar-pegged LP over the last two weeks, falling from €/LBP 1698.95 to €/LBP 1,689.00. As for the Nominal Effective Exchange Rate (NEER) of the LBP, it rose by 0.10% to reach 165.74 points.
International Forex Market:
The dollar strengthened these 2 weeks as the Fed confirms it’s likely to increase its interest rates. Hence, the Euro grew weaker against the dollar with the euro/dollar exchange rate dropping from €/$1.1270 to €/$1.1204, this week.
Commodities:
Over the past 2 weeks, gold prices increased from $1,334.9/ounce to $1,339.21/ounce this week.
