Friday, 18th October 2013 | Friday was a big day on the Forex market coming against the background of a continuous slide in the value of the Jamaican dollar, particularly against the US dollar, as well as the central bankers meeting with the major players in the market.
Overall, there was buying by dealers of the equivalent of US$49,535,095 and selling of US$45,891,196; large amounts for a Friday suggesting that the BOJ intervention would be in the order of US25-30 million. IC Insider have been reliably advised by someone close to a commercial bank that the central bank intervened in the market by selling US dollars at $104.65. The source said that the central bank indicated that they were not uncomfortable with the rate around these levels but asked 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 value of the local currency would spike inflation above the norm and put in jeopardy the government workers’ wage agreement.
There was buying of US Dollars by authorised dealers of US$46,831,456 as the buying rate moved up by 30 cents to $104.70 and selling of US$44,527,662 with the selling rate declining by 15 cents to $105.01. Trading in the Canadian dollar resulted in C$914,382 bought as the rate went down 51 cents to $100.53 and CS577,137 was sold with the selling rate moving up 18 cents at $102.3869. Trading in the British Pound accounted for £1,036,286 as the buying rate was up $1.30 to end at $167.984 and £374,396 was sold at a selling rate up 68 cents to $170.52.
The highest buying rate for the US dollar fell $1.05 to 106.75, while the lowest buying remained unchanged at $85.00 and highest selling rate and lowest remained the same at $109.14 and $102.00 respectively.
The highest buying rate for the Canadian fell $2.50 to 103.00 but the lowest climbed 29 cents to $80.76; the highest selling rate dropped 50 cents to $104.50 while the lowest was up 30 cents to $97.30. The highest buying rate for the British Pound climbed 20 cents $172.00 and the lowest jumped $33.67 to $133.67; the highest selling rate dropped 34 cents to $173.00 and the lowest was up 80 cents to $162.80.
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