Dollar Strengthens this Week on the back of Possible Interest Rate Rise in the US
| 02/02/2017 | 24/02/2017 | %Change | YTD | |
| Euro / LP | 1,585.59 | 1596.890 | -0.71% | |
| Euro / Dollar | 1.0518 | 1.0593 | -0.71% | |
| NEER Index** | 117.43 | 117.29 | 0.12% | -0.83% |
Lebanese Forex Market
Demand for the dollar on the Lebanese forex market stabilized at $/LP 1,514.25 within the range $/LP 1,514 – 1,514.5.
Foreign assets (excluding gold) at the Central Bank reached $40.04B at the end of January 2017 compared to $37.02B in the same period last year.
The dollarization ratio of private sector deposits rose from 64.88% in 2015 to 65.82% in 2016.
By Friday March 3rd, 2017, the euro depreciated against the dollar-pegged LP going from €/LBP 1,596.89 on February 24th to €/LBP 1,585.59, this week.
As for the Nominal Effective Exchange Rate (NEER) of the LBP, it increased by 0.12% over the past week to stand at 117.43 points.
International Forex Market:
The euro/dollar fell by 0.71% to €/$ 1.0518 over the past week, this came as a result of the hawkish comments by the Fed’s governor which encouraged investors to expect an interest rate hike this month.
Commodities:
Over the week, despite the stronger dollar, gold prices increased from $1,257.05/ounce on February 24th to $1,226.85 this week.
