Business
Dollar gains, Aussie at low, euro pegged back by PMI surveys
LONDON – The dollar rose against the yen and the euro on Wednesday as expectations grew that key economic data from the United States this week could increase pressure on the Federal Reserve to exit its bond-buying program.
The euro fell 0.1 against the dollar to $1.3580. It also pared gains against the yen after mixed euro zone service sector data, with activity in Italy and France contracting in November but expanding in Spain and Germany, highlighting the divergence in the bloc.
The Australian dollar fell to a three-month low as investors pared back riskier bets and after Australia’s GDP growth came in below market expectations.
The U.S. dollar reversed early losses to trade up 0.3 percent against the yen at 102.80 yen. The dollar index rose 0.2 percent to 80.742.
Markets are eyeing U.S. GDP data on Thursday and the non-farm payrolls report on Friday, which investors will study for clues about when the Fed will taper its monetary stimulus. Its next policy meeting is on December 17-18.
Many investors and analysts expect the Fed to begin reducing stimulus at its March meeting, so an upbeat employment report would increase speculation that tapering could come earlier.
“This week is maybe the most important week for the dollar now for the year,” said Manuel Oliveri, currency strategist at Credit Agricole. “There’s a lot of risk for the dollar to appreciate on the back of surprise data from the U.S.”
Oliveri expect the Fed to begin tapering in January.
Hedge funds sold the Australian dollar after data showed 0.6 percent growth in GDP in the third quarter, below analysts’ median forecast of 0.8 percent.
That news came just a day after the Reserve Bank of Australia kept its cash rate steady at a record low of 2.5 percent, although it reiterated that the local currency remained “uncomfortably high”, and expectations have now grown that it could act at its next meeting.
The Aussie dropped 1.1 percent to $0.9036, breaking through the key support level of $0.9050/55. A sustained break could see a retracement all the way to this year’s low of $0.8848.
Hedge funds have been negative on the Aussie for some time. CQS founder Michael Hintze, whose firms runs around $12 billion, told Reuters last month that he was short the Australian dollar, citing the “very, very clear” wish of central bank governor Glenn Stevens for it to weaken.
– REUTERS
In a sharp turn of events, the Nigerian Naira took a significant tumble on Tuesday, plunging to N1,416.57 against the US dollar at the official market.
This staggering drop of N62.36 from the previous trading day represents a 4.60 percent loss, sparking concerns among investors and analysts alike.
Data from the FMDQ Exchange, overseeing the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed this unsettling trend.
Despite the currency’s downward spiral, trading activity surged, with the daily turnover soaring to $160.77 million, compared to Monday’s $84.83 million.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira’s performance remained volatile, trading between N1,445 and N1,301 against the dollar, underscoring the currency’s precarious position in the market.
The management of Dangote Cement Plc., Ibese Plant has assured that it would continue to complement the efforts of the Ogun State Government in the development of its host communities through capacity building for the people, especially the youths.
In a statement, the company declared its commitment to development for the prosperity of the people and host communities for which it is placing a premium on the developmental needs of the communities and empowerment of their indigenes.
During a capacity development workshop for Host Community Representatives, General Manager, Human Asset Management/Admin, Aina Olugbenga, said, Dangote Cement remained committed to implementing value-adding empowerment programs to uplift the people and develop the host communities.
The workshop themed: “Team Building, Inclusivity and Stewardship, a panacea to effective Community Representatives” according to him, was to equip the Community reps with the right skills to offer quality representation for their people. He stated: this capacity building workshop is aimed at developing and strengthening the skills, instincts, and abilities of the communities through their representatives adapt and thrive in a fast-changing world.
Olugbenga noted that the workshop is part of the management’s strategy to improve relationships with the host communities and urged the participants to leverage the knowledge acquired from the workshop to improve service delivery to their people and the Cement plant.
According to him, Dangote Cement, Ibese Plant is committed to building the capacity of the people and institutions in the communities by identifying skill gaps and partnering to up their skills for economic prosperity. This, he stated, was in anticipation that other stakeholders will continue to play their part by partnering and supporting the Company to ensure peaceful co-existence and shared prosperity for all.
Said he, “Apart from reciprocating the good gesture of Dangote Cement by ensuring peace at all times and keeping an open and trusting mind towards the organization, we also desire from our community leaders and representatives who are present here, the ownership of all Social Investment programme, be it training or infrastructure because they are meant for the betterment of our people.”
On behalf of the Community Representatives, Hon. Dayo Ogunyinka thanked the Dangote Cement management for the workshop while assuring continued commitment to effective, efficient and selfless discharge of their roles and responsibilities to their various communities and the Plant.
The Nigeria Deposit Insurance Corporation (NDIC) has announced revisions to the Maximum Deposit Insurance Coverage for banks operating within the country.
NDIC’s Managing Director, Bello Hassan, disclosed the updated coverage benchmarks during a media briefing in Abuja on Thursday.
The coverage for Deposit Money Banks has been increased from N500,000 to N5 million, for Microfinance Banks from N200,000 to N2 million, for Primary Mortgage Banks from N500,000 to N2 million, and for Mobile Money Operators subscribers’ pass-through from N500,000 to N5 million per subscriber.
Hassan underscored that the objective of the update is to enhance depositor safety, foster public trust, promote the inclusivity of financial services, and ensure the overall stability of the financial sector.
More to follow.. . .. .
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