In spite of positive developments in the US, the dollar closed positive on the international forex front but lost against the local currency in the domestic market due to the supply boost to the cedi.
The cedi thus appreciated by 0.30 per cent to trade at GH¢4.39 per dollar, representing a year-to-date depreciation of 4.62 per cent.The 19-bloc currency was weighed by post-election uncertainties and low macro-economic data readings from the Eurozone.
The difficulties surrounding Angela Merkel in forming a coalition government after her win in the recent general election in Germany dimmed investors sentiment and that sparked series of profit taking activities among investors. These factors took the shine of the 19-bloc currency, causing it to lose 1.25 per cent against the local currency.
The cedi thus traded at GH¢5.9 per euro, reducing its year-to-date depreciation to 13.47 per cent.
UK’s Brexit secretary – Barnier’s comment that a considerable progress is made in connection with the Brexit negotiation, an indication that a conclusion may be achieved sooner, buoyed market sentiment and stimulated demand for the pound sterling among currency traders. The surprise boost of the pound was also by upbeat retail sales data which settled at 42 points in September from a negative 10 points in August.
In spite of the pound’s positive outlook, the currency failed to steady against the local currency, which was supported by the recent inflow.
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The cedi thus appreciated by 1.61 per cent to trade at GH¢5.19 per pound, representing a year-to-date depreciation of 17.07 per cent.
Credit: Graphic News