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Exchange: currencies move in a degraded order

17/01/2025
Source : ORISHAS FINANCE
Categories: Economy/Forex

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At the end of this week, the US dollar remained stable, while the Australian and New Zealand dollars are expected to record their first weekly gain in seven weeks. The naira is rising against the dollar, and the Kenyan shilling is stable. For its part, the is expected to have its best week in over a month and the yuan yuan is on the verge of ending a four-week streak of losses.

The dollar stabilized on Friday, but was on track to end the week down after six consecutive weeks of gains, as investors turned their attention to Donald Trump's presidential inauguration and awaited the policies of the new administration. The dollar has jumped in recent weeks due to higher Treasury yields, reflecting expectations that President-elect Trump's policies could boost inflation when the American economy is already strong. The dollar index, which measures the American currency in relation to six other units, thus rose by 0.1% to 109.08, far from a peak of more than two years reached at the beginning of

the week.

The Australian and New Zealand dollars are on track for their first weekly gain in seven on Friday, but recent price movements have been poor, indicating that short-term risks remain on the downside. Both currencies also weakened against the Japanese yen, which rose overall as markets raised expectations that interest rates from the Bank of Japan would rise next week. This raised the 2024 growth rate to 5%, in line with Beijing's target.

The naira strengthened against the dollar on the official foreign exchange market on Thursday, a day after a fall. Data from the FMDQ showed that the naira gained 1.54847 N to the dollar on Thursday, up from 1.551.10 N recorded the day before. This indicates a marginal appreciation of 2.63 N.

The Kenyan shilling held steady against the US dollar on Friday, according to data from the London Stock Exchange Group.

At 08:31 GMT, the shilling was trading at 129.25/129.75 per dollar, the same level as at the close of trading on Thursday.

The yen is poised for its best weekly performance in over a month, as expectations are growing for a Bank of Japan rate hike next week, putting the dollar on the defensive before Donald Trump returns to the White House. The yen rose 1.5% against the dollar this week, its biggest weekly gain since the end of November. It was slightly weaker at 155.34 per dollar on Friday, but still close to the one-month high of 155.10

hit on Thursday.

The yuan strengthened against the dollar on Friday and seems poised for its first weekly gain in over a month, after a series of data showed that the Chinese economy ended 2024 on a better footing than expected. At 02:30 GMT, the yuan was up 0.06% at 7.3271 per dollar, 45 pips firmer than the close of the previous session and on the verge of ending a streak of four weeks of losses. The offshore yuan traded at 7.3397 yuan to the dollar, up by about 0.08% in Asian

trade.
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