Euro’s Weakness Still Pointing to the Influence of Monetary Policy on the Forex Market

At 15:20 Beirut time, the Euro was quoted at €/$ 1.0616, the equivalent of €/LBP 1,600.36, depreciating against the US Dollar by 0.09%.

The euro’s decline against the dollar continues to show how sensitive the forex market is to the diverging monetary policies led by the world’s two biggest Central Banks: the European Central Bank and the Federal Reserve.

Locally, the forex market continues to trade within the $/LP 1,500-1,515 band set by the Central Bank, but at the higher end of the peg’s range . The dollar went from $/LP 1,510.5-1,514.5 with a mid-price of $/LP 1,512.5 to $/LP 1,512.5-1,514.5 with a mid-price of $/LP 1,513.5

Compared to the pool of currencies of Lebanon’s major trading partners, the purchasing power of the Lebanese Pound increased as reflected by the NEER, published by BLOMINVEST, which gained 0.04% to 169.21 points today.