Business
Dollar heads for worst quarter as Naira remains steady
By Odunewu Segun
The United States Dollar at the weekend was on course for its worst quarter in seven years, recovering only marginally against some of its major peers.
The greenback gained around 0.3 percent against the euro in morning trade in Europe, but was still down more than 8 percent on the quarter and 2 percent this week alone.
Compared with last week U.S. close against the basket of currencies that measures its broader strength it was steady. But it fell 0.2 percent against the yen as the Japanese currency recovered from its own losses this week.
The shift this week to price in rate rises in the months ahead by a number of central banks outside of the U.S. Federal Reserve has left both the dollar and the yen exposed, but a number of analysts wonder if the move has been overdone.
Data and several policy meetings over the next fortnight will be crucial, with Canadian releases a focus on Friday.
Helped by a recovery in oil, the Canadian dollar has pulled back to less than C$1.30 to its U.S. counterpart for the first time since January as investors priced in a 70 percent chance of a rise in rates on July 12.
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As well as GDP data on Friday, Canadian banks including RBC pointed to the need for the Bank of Canada’s Business Survey to support the positive rhetoric of officials in the past fortnight if the Canadian dollar was to hold onto its gains.
Sterling has also breached $1.30 this week with a hike in interest rates by December now 70 percent priced in. It was pushed back below that level by a quarterly rise in Britain’s huge current account deficit on Friday.
Meanwhile, local currency, the Naira sustains a healthy swing against the United States of America Dollar, at the parallel segment of the Nigerian foreign exchange market,
Closing the month of June and the last trading day of the week, the Nigerian currency traded firm at the rate of N368 against the greenback.
Against the British Pound Sterling, the local currency also maintained the same rate of N490 and also exchanged at the rate N410 against the European Single Currency, Euro.
At the official Spot FX or Interbank market, the Naira closed the week and month, exchanging at the rate N305.9 against the American Dollar.