Tuesday, 1st October 2013 | Demand and supply will drive the movement in the rate of exchange for the rest of the year and beyond as the Jamaica’s central bank is not likely to intervene to stem the depreciation of the Jamaican dollar. The movement is a part of the broader plan for sustainable economic growth going forward. At the same time, information is that the financial system is tight with the government running a fiscal surplus for the funding of its local operations.
On Monday, the inflows of foreign exchange into the system was more than the amount sold as dealers bought the equivalent of US$45.33 million and sold US$38 million. The amount of US dollars actually bought was US$40.57 million and selling was $35.53 million at 9 cents more than on Friday at a new high of $103.60. The buying rate moved up by 14 cents to $102.87.
Canadian dollars fetched 20 cents more at $98.44 as dealers bought C$1.22 million and sold $758,886 at 22 cents more than on Friday to close at $100.71. The Pound Sterling was bought for 3 cents less than on Friday at $163.93 for £2.1 million as they sold £948,527 at 22 cents cheaper at $167.16.
Tuesday trading | The US dollar once more gained against the Jamaica dollar as dealers sold at 13 cents more at $103.73 as they sold US$24.28 million. They bought $21.6 million at 12 cents lower than on Monday at $102.76. The Canadian was purchased at 32 cents more at $98.76 for C$746,970 while they sold 409.482 for 36 cents cheaper at $100.36. The Pound Sterling was up $2.66 at $166.59 for 1.84 million and sold 1.768 million at $169.27 at $2.12 higher than on Monday. Overall, the total US dollar equivalent that entered the market amounted to $25.46 million and selling $27.7 million.
High & Lows | The highest rates for buying the currencies remained unchanged for the US dollar at $104.65 on Tuesday but the rate paid at the lowest level increased by 25 cents to $84.75. There was no change to the highest selling rate of $108.61 but the low increased by $1.59 to $86.09.
The Canadian dollar was bought as high as $101.55, which is 5 cents less than on Monday and lowest buying rate was 34 cents more at $80.68, while selling took place as high as 5 cents more at $104 and 85 cents down as low as $97.
The British Pound was $1.45 higher for the high buy rate at $169.30 and $16.43 cheaper at the low of $118.32 while sales took place at 10 cents higher at $173.87 at the high end and 25 cheaper for the low at $162.50.
Image courtesy of Boaz Yiftach/FreeDigitalPhotos.net
