The Jamaican dollar strengthened further against the US dollar in foreign exchange trading on Monday, with it taking 4 cents less to buy the US dollar than on Friday.
The major news of the day was the sell-off of the Canadian dollar with dealers selling Can$21.36 million but at a higher rate than at the close of Friday, compared to just Can$3.6 million bought on Monday.
On Monday, the rate of exchange to buy the US dollar by the public, dropped to $126.30 as dealers sold US$44.52 million of the US dollar, compared to US$28.17 million at an average rate of $126.34 on Friday.
US currency purchases amounted to US$48.63 million on Monday, at an average rate of $125.45, compared to Friday, with US$35.34 million at $125.46.
Dealers’ purchased US$53.35 million, versus US$43.45 million on Friday in all currencies in Jamaica’s forex market and sold US$62.52 million compared with US$34.28 million sold, previously.
At Midday, dealers bought just US$27.48 million at J$125.99 and sold US$13.66 million at J$126.23 compared to the purchase of US$6.7 million at J$125.60 and selling of US$8.9 million at J$126.21 on Friday
The selling rate for the Canadian dollar rose to J$99.90 from J$99.50 at the close on Friday. The selling rate for the British Pound climbed to J$168.14 versus J$167.32 previously and the euro gained in value against the Jamaican dollar, jumping to J$152.44 to buy the European common currency, versus prior selling rate of J$148.92.
Jamaican$ makes more gains – Monday
Highest valued Jamaican$ since mid-2016
The Jamaican dollar made its strongest gains against the US dollar in November in foreign exchange trading on Friday, with it taking 20 cents less to buy the US dollar than on Thursday.
On Friday, the rate of exchange to buy the US dollar by the public, dropped to $126.34 as dealers sold US$28.17 million of the US dollar, compared to US$25.95 million at an average rate of $126.54 on Thursday.
Friday’s rate is the lowest since July 20, 2016, when the average rate ended at $126.36. The currency also appreciated from J$128.27 at the end of 2016. US currency purchases amounted to US$35.34 million on Friday, at an average rate of $125.46, compared to Thursday, with US$23.03 million at $125.27.
The gain took place in a remarkable month for the local dollar, with the rate closing at the end of October at $127.29 and now seeming as it could break below the $126 mark by the end of November. The local currency came under pressure in early September, as Jamaicans secured funds to invest in new bonds government of Jamaica was issuing to retire older expensive debt. The payout of the retiring bonds left the market flooded with US dollars. Demand waned for the US dollar, leading to sell off since mid-September, after the US dollar peaked against the Jamaican dollar at J$131.31, with the rate retreating weekly since.
The fate of the currency is now in the hands of the central bank, as the country enters a period of heighten inflows and relatively less demand up to April. For November, the central bank selling to the market by way of auction was limited US$27 million with the last two weeks being $4 million each. The central bank indicates that market intelligence suggest no need to intervene on the sell side for the first two weeks in December.
Trading volumes in the market for this past week, fell to the lowest, for November, with US$223 million Inflows and outflows of US$217 million compared to inflows in the previous weeks of US$252 million to $271 million and outflows of US$240 million to US$281 million of all currencies.
Dealers’ purchased US$43.45 million, versus US$24.92 million on Thursday in all currencies in Jamaica’s forex market and sold US$34.28 million compared with US$26.96 million of all currencies sold, previously.
The selling rate for the Canadian dollar rose to J$99.50 from J$99.41 at the close on Thursday. The selling rate for the British Pound dropped to J$167.32 versus J$168.40 previously and the euro fell value against the Jamaican dollar, rising to J$148.92 to buy the European common currency, versus prior selling rate of J$151.68.
Forex trading drops sharply on Thursday
Trading in the foreign exchange trading on Thursday declined sharply from Wednesday’s levels by more than 50 percent as just US$25 million flowed into the market and US$27 million was sold of all currencies.
The flows are by far the lowest amounts for November to date, with the previous low being Friday the 10th with inflows of US$40 million and outflows of US$46 million.
On Thursday the Jamaican dollar decline in value in the foreign exchange trading, with the rate of exchange to buy the US dollar by the public, inching higher to $126.54 as dealers sold US$25.95 million of the US dollar, compared to US$39.17 million at an average rate of $126.52 on Wednesday.
US currency purchases amounted to US$23.03 million on Thursday, at an average rate of $125.27 compared to Wednesday, with US$39.23 million at $125.58.
Dealers’ purchased US$24.92 million, versus US$51.30 million on Wednesday in all currencies in Jamaica’s forex market and sold US$26.96 million compared with US$50.64 million of all currencies sold previously.
At Midday, dealers bought just US$4.5 million at J$125.50 and sold US$2.9 million at J$126.45 compared to the purchase of US$18 million at J$126.07 and selling of US$10.9 million at J$126.44.
The selling rate for the Canadian dollar slipped to J$99.41 from J$99.63 at the close on Wednesday. The selling rate for the British Pound rose to J$168.40 versus J$167.19 on Wednesday and the euro gained value against the Jamaican dollar, rising to J$151.68 to buy the European common currency, versus J$149.50 previously.
Jamaican$ fairly stable on Wednesday
The Jamaican dollar rose in value in the foreign exchange trading on Wednesday, with the rate of exchange to buy the US dollar by the public, declining to $126.52 as dealers sold US$39.17 million of the US dollar, compared to US$43.27 million at an average rate of $126.54 on Tuesday.
US currency purchases amounted to US$39.23 million on Wednesday, at an average rate of $125.58 compared to Tuesday, with US$39.31 million at $125.59.
Dealers’ purchased US$51.30 million, versus US$54.28 million on Tuesday in all currencies in Jamaica’s forex market and sold US$50.64 million compared with US$59.20 million of all currencies sold previously.
At Midday, dealers bought US$18 million at J$126.07 and sold US$10.9 million at J$126.44 compared to the purchase of US$12.9 million at US$10.5 million at J$126.62.
The selling rate for the Canadian dollar slipped to J$99.63 from J$99.70 at the close on Tuesday. The selling rate for the British Pound edged to J$167.19 versus J$167.18 on Tuesday and the euro lost value against the Jamaican dollar, rose to J$149.50 to buy the European common currency, versus J$149.72 previously.
No B-Fxitt sale by BOJ in December
There are unlikely to be any sale of foreign exchange by Bank of Jamaica during December, a release from the central bank suggests.
According to Jamaica’s central bank “market intelligence provided by authorised dealers and cambios on prevailing and prospective market conditions indicates that there is no need for the Bank to add foreign exchange to the market during the first two weeks of December 2017. The B‐FXITT process remains in place and Bank of Jamaica will continue to assess market intelligence going forward and engage with the foreign exchange market as appropriate.
The amounts the central bank made available in November was reduced to US$4 million per auction down from a usual amount of $10 million in the past. Based on historical tends with increase inflows into the system from Mid-December is very unlikely that the central bank will be doing much selling and could in turn start the auction to buy surpluses from the market which is expected to occur from December until April next year.
The change comes against the back ground of Bank of Jamaica reducing their compulsory take from 25 percent to 20 percent which will result in between US$40 and $50 million more available for the public on a monthly basis as well as a clear sign of sell off of foreign exchange by dealers from October.
Jamaican$ value improves – Tuesday
Trading in the foreign exchange market the rate of exchange to buy the US dollar by the public, declining again on Tuesday to $126.54 as dealers sold US$43.27 million of the US dollar, compared to US$41.70 million at an average rate of $126.58 on Monday.
US currency purchases amounted to US$39.31 million on Tuesday, at an average rate of $125.59 compared to Monday, with US$43.65 million at $125.55.
Dealers’ purchased US$54.28 million, versus US$48.63 million on Monday in all currencies in Jamaica’s forex market and sold US$59.20 million compared with US$45.47 million of all currencies sold previously.
At Midday, dealers bought US$12.9 million at J$125.90 and sold US$10.5 million at J$126.62 compared to the purchase of US$9.9 million at J$125.92 and selling of US$4.3 million at J$126.74.
The selling rate for the Canadian dollar climbed to J$99.70 from J$98.88 at the close on Monday. The selling rate for the British Pound slipped to J$167.18 versus J$167.27 on Monday and the euro gained value against the Jamaican dollar, rose to J$149.72 to buy the European common currency, versus J$149.28 previously.
Jamaican$ gains value moderately – Monday
Trading in the foreign exchange market returned to normal levels on Monday, compared to Friday with a C$60 million sell off of the Canadian Dollar.
By the close of trading, the rate of exchange to buy the US dollar by the public, fell on Monday to $126.58 as dealers sold US$41.70 million of the US dollar, compared to US$24.76 million at an average rate of $126.64 on Friday.
US currency purchases amounted to US$43.65 million on Monday, at an average rate of $125.55 compared to Friday, with US$28.39 million at $125.38.
Dealers’ purchased US$48.63 million, versus US$38.85 million on Friday in all currencies in Jamaica’s forex market and sold US$45.47 million compared with US$73.49 million of all currencies sold previously.
At Midday, dealers bought US$9.9 million at J$125.92 and sold US$4.3 million at J$126.74 compared to the purchase of US$9.6 million at J$125.96 and selling of US$8.9 million at J$126.78.
The selling rate for the Canadian dollar dipped to J$98.88 from J$99.99 at the close on Friday as the Canadian dollar dominated trading on Friday. The selling rate for the British Pound rose to J$167.27 versus J$166.43 on Friday and the euro gained value against the Jamaican dollar, to J$149.28 to buy the European common currency, versus J$148.11 previously.
Big sell off of Canadian dollars – Friday
In trading in the foreign exchange market on Friday the Canadian Dollar was the dominant currency traded with just C$10 million bought but C$60 million sold.
The rate of exchange to buy the US dollar by the public rose on Friday to $126.64 as dealers sold US$24.76 million of the US dollar, compared to US$32.99 million at an average rate of $126.62 on Thursday.
US currency purchases amounted to US$28.39 million on Friday, at an average rate of $125.38 compared to Thursday, with US$32.30 million at $125.76.
Dealers’ purchased US$38.85 million, versus US$47.89 million on Thursday in all currencies in Jamaica’s forex market and sold US$73.49 million compared with US$46.03 million of all currencies sold previously.
For the week the equivalent of US$271 million was bought by dealers and US$281 million sold compared with buying of $257 million the week before and selling of $240 million.
The selling rate for the Canadian dollar rose to J$99.99 from J$99.72 at the close on Thursday as the Canadian dollar dominated trading. The selling rate for the British Pound rose to J$166.43 versus J$165.67 on Thursday and the euro fell in value against the Jamaican dollar, to J$148.11 to buy the European common currency, versus J$148.78 previously.
Jamaican$ gains – Thursday
The rate of exchange to buy the US dollar by the public rose on Thursday to $126.62 as dealers sold US$32.99 million of the US dollar, compared to US$47.67 million at an average rate of $126.74 on Wednesday.
US currency purchases amounted to US$32.30 million on Thursday, at an average rate of $125.76 compared to Wednesday with US$44.36 million at $125.89.
Dealers’ purchased US$47.89 million, versus US$55.58 million on Wednesday in all currencies in Jamaica’s forex market and sold US$46.03 million compared with US$58.02 million of all currencies sold previously.
The selling rate for the Canadian dollar declined to J$99.72 from J$99.90 at the close on Wednesday. The selling rate for the British Pound fell to J$165.67 versus J$167.18 on Wednesday and the euro surged in value against the Jamaican dollar, to J$148.78 to buy the European common currency, versus J$150.01 previously.
Jamaican$ value slips – Wednesday
The rate of exchange to buy the US dollar by the public rose on Wednesday to $126.74 as dealers sold US$47.67 million of the US dollar, compared to US$48.09 million at an average rate of $126.64 on Tuesday.
US currency purchases amounted to US$44.36 million on Wednesday, at an average rate of $125.89 compared to Tuesday with US$59.23 million at $126.15.
Dealers’ purchases dipped to US$55.58 million, versus US$74.79 million on Wednesday in all currencies in Jamaica’s forex market and sold US$58.02 million compared with US$61.65 million of all currencies sold previously.
The selling rate for the Canadian dollar declined to J$99.90 from J$100.20 at the close on Tuesday. The selling rate for the British Pound jumped to J$167.18 versus J$165.09 on Tuesday and the euro surged in value against the Jamaican dollar, to J$150.01 to buy the European common currency, versus J$147.39 previously.