The rate of exchange for the Jamaican dollar has been sliding since May but this did not stop the country’s dominant bank, National Commercial Bank (NCB) off loaded $42.5 million on October 4, while buying $4.4 million on a day when US$70 million was sold and only US$27 million was purchased. This followed the dumping of US$18.45 million on October 3 when they bought US$2.4 million. The most likely buyer for the bulk of the sale would have been the country’s central bank, Bank of Jamaica, if so, it may not bode well for speculators against the local currency as the move may well be signaling that the top of the market is not far away.
Interestingly, there was US$700,000 more purchased on Monday, October 14 over the amount sold and US$2.2 million today. While the rate for the Jamaican dollar has been on a slide, the week ending October 11 saw buying exceeding selling by very good margins for three days when there was $11 million more buying than selling as US$149 million was bought and US$136 million was sold. In the prior week, there was a net sell off of US$20.5 Million as dealers bought US$152.7 million and sold US$173 million.
Since the huge NCB sale, there has been more buying that selling of foreign currency in the overall market. On Tuesday, more funds were purchased in the forex market for the third consecutive day but the rate for the local dollar rose across the board except for a decline in the selling rate for the Canadian dollar.
Trades on Tuesday | Dealers purchased US$23.5 million in various currencies and sold US$21.35 million. Actual purchases of US dollars amounted to $21.2 million at a closing rate that was 13 cents up on the day at $104.03 and sold US$19.48 million at only 4 cents higher than on Friday at $104.85. Dealers purchased C$813,472 for $99.53 at 64 cents more than on Friday and they sold C$407,722 at $100.93, down by 45 cents. £830,084 was purchased at $165.32 up by 70 cents and £663,395 was sold at $168.20 or 22 cents lower at the end of the day.
Highs & Lows | The highest and lowest rates generally moved up except for one remaining unchanged and the highest selling rate for Pound which fell by 21 cents to end at $172.59.
The highest buying rate for the US dollar increased by 5 cents to end at $106.30 while the lowest buying rate was unchanged at $84.96; the highest selling rate inched to 6 cents to $108.93 and the lowest increased 21 cents to $84.96.
The highest buying rate for the Canadian dollar climbed 5 cents to end at $102.35, the lowest buying rate ended at $81.22, higher by $1.04; the high for selling rate stood 98 cents higher at $104.44 and the selling low was at $97 up 40 cents.
The British Pound highest buying rate climbed 40 cents to end at $169.60, the lowest buying rate was up 21 cents to $133.88; the highest selling rate fell 21 cents to $172.59 and the lowest selling rate climbed 25 cents to $161.30.
[…] for an orderliness in their behaviour. Friday’s intervention is in keeping with our report on the NCB big sell off of US dollars, which would have placed the central bank in a position to intervene since a major slide in the […]