Large Pound sell off – Tuesday

Dealers sold £11 million, the equivalent of US$16 million in trading on the Jamaican foreign exchange market on Tuesday. The selling rate jumped by $5.42 to over J$180 and the highest rate for selling the pound ended at J$184.57. The amount sold, is much higher than the regular daily intake, and much less than the average sales, that tends to be well under a million Pounds.
Over the last week, just under £5 million more was purchased by dealers than they sold as demand for Pounds tend to be less than the inflows. The most likely buyer for the bulk of the trade, would be the Bank of Jamaica.
The market closed with dealers buying the equivalent of US$28,998,834 and selling US$45,337,734, with US$16 million of the sales being the sell-off of the Pound, in contrast to US$48,999,565 purchased and US$43,396,687 sold on Monday.
In US dollar trading, dealers bought US$25,822,561 compared to US$45,983,812 on Monday, as the buying rate for the US dollar fell 15 cents to $122.93. A total of US$28,682,783 was sold versus US$42,353,389 on Monday with the selling rate rising 11 cents to $123.95. The Canadian dollar buying rate climbed 56 cents to end at $92.42 with dealers buying C$1,025,619 and selling C$475,586, at an average rate that declined 73 cents to $94.62. The rate for buying the British Pound rose $1.41 to $175.44 for the purchase of £1,573,961, while a big sell off of £11,043,238, the equivalent of US$16 million took place, with the rate jumping by $5.42 to $180.14.
At the end of trading, the selling rate for Euro, fell 21 cents to close at J$141.16, from Monday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$138.18, a fall of 24 cents from Monday’s rate. The US dollar equivalent of other currencies traded amounts to US$159,077 being bought, while US$241,629 was sold.
Highs & Lows| Notable changes to the highest and lowest traded rates for the Jamaican dollar against the main currencies on Tuesday are, a decline of $1 in the highest buying rate of Canadian dollar to end at $95 and a fall of $5.50 in the lowest selling rate to end at $84.50. A fall of $1 in the highest buying rate for the British Pound to $178.30 and a rise of $1.10 in the lowest selling rate to $170.50.