Oil Remains Stable As Stronger Dollar Offsets Red Sea Crisis

Taiwo  Adekeye, FMVA

January 17, 2024

Oil prices rarely moved on Tuesday, Pressure came from the dollar rising to its highest level in a month, supported by concerns about how rising Middle East tensions will affect energy supplies. Brent crude futures read up by 14cents to settle at $78.29 a barrel while U.S. West Texas Intermediate crude futures ended at $72.40 a barrel, down by 28 cents.

Nigeria: Forex turnover hits $147.81 million up by 460.52%

Forex turnover rose by 460.52% to $147.81 as the Naira declined against the USD on Tuesday, in both the official and parallel markets.   The local currency was down by 4.72% to close at N878.57, N39.62 loss compared to the N838.95 closed the previous day.     in the same vein, The NGN was N1280/$ down by 1.17% compared to the previous close

South Africa:  The Rand slips as dollar jumps on rate outlook

The Rand shed more than 1% against the USD on Tuesday as investors reduced their expectations of a rate decrease in March from the US Federal Reserve and the impact of the Red Sea attacks on risk appetite. The rand traded at 18.9625 against the U.S.D, about 1.5% lower than its previous close. The Top-40 index on the Johannesburg Stock Exchange, ended the session with a decline of about 1%.

Tanzania: Tanzania has lifted ban on Kenya Airways flights

Tanzania has reinstated approval for Kenyan national carrier Kenya Airways to operate flights between the Kenyan capital Nairobi and Tanzania’s commercial capital Dar es Salaam. Tanzania announced on Monday it had restricted Kenya Airways flights after Nairobi refused to grant a request to Tanzania’s national carrier (Air Tanzania) to operate cargo flights between both nations. The air authorities of the United Republic of Tanzania on 15 January hereby withdraw its initial decision and therefore approve Kenya Airways to operate between Nairobi and Dar es Salaam.

India: India inflation approaching 4% target

Inflation in India is moderating and steadily approaching the central bank’s 4% target while growth prospects remain robust, A statement by Reserve Bank of India chief.  Inflation has come under control and is within the range of 2% to 6%, still within Target of 4%. Core Inflation decline is an attestation that the monetary policy is working whose aim is to lower inflation to 4% target. However, the reduction in exchange rate volatility has renewed investors’ confidence in the economy.

China:  Q4 GDP shows a weak economic recovery, raises case for policy

China’s economy grew a bit lower than expected in the Q4, with a deepening property crisis, mounting deflationary pressures and weak demand reinforcing expectations that Beijing will have to roll out more stimulus measures soon. GDP grew by 5.2% in October-December from a year earlier, up from 4.9% in Q3. The second world economy currency has come under fresh pressure recently as market expectations grow that policymakers will have to commit soon to more interest rate cuts and other support measures.

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