Cedi Loses Grounds Against Three Major Trading Currencies

The Ghana cedi lost grounds against the three major trading currencies on the international currency market. The US dollar advanced on the international currency market buoyed by chains of upbeat economic data from the US economy which are likely to compel the Fed to reconsider its position of leaving interest rate unchanged.

Cedi Loses Grounds Against Three Major Trading Currencies
The Ghana cedi lost grounds against the three major trading currencies on the international currency market.
The US dollar advanced on the international currency market buoyed by chains of upbeat economic data from the US economy which are likely to compel the Fed to reconsider its position of leaving interest rate unchanged.
On the back of this, the US dollar recorded 0.18 per cent week-on-week appreciation against the local currency as its selling price rose to GH¢5.74 on the interbank currency market. The year-to-date appreciation of the cedi thus reduced to 0.32 per cent.
The British pound gained support after hawkish commentary by the Bank of England on interest rate outlook in the UK. The British pound ended the trading week with 0.25 per cent appreciation against the cedi at a selling price of GH¢8.15 on the interbank currency market. The year-to-date depreciation of the local currency thus rose to 3.27 per cent.
The Euro posted a marginal appreciation on the international forex market as its support in the week’s trade was nearly eroded by negative developments. The euro saw 0.12 per cent appreciation against the cedi at a selling price of GH¢7.00. The year-to-date appreciation of the cedi thus lowered to 0.99 per cent.
 
At the recently held auction, interest rates on the GoG Treasury securities were mixed adjusted. The yield on the 91-Day T-Bill rose by two basis points to 12.78 per cent.
That on the 364-Day T-Bills also inched up by seven basis points to 16.49 per cent but the yield on the 182-Day T-Bill shed three basis points to 13.51 per cent. Yields on Government Bonds and treasury notes, however, remained unchanged.
At the auction, the Government accepted GH¢1,817.56 million worth of bids out of GH¢1,852.67 million bids tendered by investors. The GH¢1,177.00 million targets set by the Government were exceeded by GH¢640.56 million.