KINGSTON, Jamaica — The United States (US) dollar on Friday, October 2, ended trading at $159.37, down 84 cents from Thursday’s close of $160.21, according to the Bank of Jamaica’s (BOJ) daily foreign exchange trading summary.
Meanwhile, the Canadian dollar ended trading at $112.53, up from $112.37, and the British pound ended at $212.69, up from $211.41. The euro closed at $183.50, up from $181.69.
Friday’s close leaves the US dollar 8 cents below the previous Friday’s close of $159.45 and 12 cents below Monday’s close of $159.49. The currency had climbed steadily through the week and briefly moved above $160 on Thursday before Friday’s pullback.
The decline came as the BOJ sold US$30 million to the market on Friday through a flash sale under its B-FXITT intervention facility. According to the central bank, the full amount was allotted, with eligible bids totalling US$85.55 million. The sale settles on Monday, October 5.
The BOJ has also announced standard US dollar sales for October 15 and 16, with amounts to be announced the day before each auction.
The week’s trading followed the BOJ’s increase in its policy interest rate to 6.0 per cent, effective September 29. Separately, the Statistical Institute of Jamaica (STATIN) reported on September 30 that the economy contracted 2.9 per cent in the April to June quarter, with mining, agriculture and hotels still recovering from Hurricane Melissa.
At the BOJ average selling rate, US$100 now costs about J$15,937, roughly J$84 less than on Thursday. Rates quoted at bank and cambio counters typically sit above the BOJ average.
Families receiving remittances saw a small gain, with US$100 converting to about J$15,802 at the average buying rate, compared with about J$15,778 on Thursday.
A steadier Jamaican dollar can limit pressure on the cost of imported food, fuel and construction materials. The BOJ’s higher policy rate, however, may be reflected in loan and mortgage rates in the coming months.
For Jamaicans in Canada, the Canadian dollar ended the week 80 cents below the previous Friday’s close of $113.33, so money sent home buys slightly less. The British pound finished the week up $1.48 from $211.21, giving United Kingdom-based buyers a little more for deposits and building costs.
Jamaica Homes News publishes regular foreign exchange updates to help buyers, sellers and overseas investors keep track of the rates that shape the cost of living, property and construction in Jamaica.
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