KINGSTON, Jamaica — The United States (US) dollar on Tuesday, October 6, ended trading at $159.66, up 62 cents from Monday’s close of $159.04, according to the Bank of Jamaica’s (BOJ) daily foreign exchange trading summary.
Meanwhile, the Canadian dollar ended trading at $112.87, up from $112.79, and the British pound ended at $210.63, down from $211.60. The euro closed at $182.62, up from $180.50.
Tuesday’s rise ended two straight sessions of gains for the Jamaican dollar. The US dollar still closed 55 cents below last Thursday’s $160.21.
The move followed two BOJ flash sales of US$30 million each under its B-FXITT intervention facility on Friday and Monday. According to the central bank, Monday’s sale drew 44 eligible bids worth US$72.78 million and was set to settle on Tuesday.
The BOJ has scheduled standard US dollar sales for October 15 and 16, with amounts to be announced the day before each auction. The central bank had not published its rates for Wednesday, October 7, at press time.
Separately, provisional figures from the Ministry of Finance and the Public Service, first reported by RJR News, show government revenue and grants for April to August totalled J$428.6 billion, J$31.3 billion below budget. The ministry linked the shortfall to the economic downturn’s effect on consumer demand and corporate profits, according to the report.
The BOJ’s policy rate stands at 6.0 per cent, with its next decision scheduled for November 18. Inflation was 7.9 per cent in August, above the bank’s target range of 4.0 to 6.0 per cent.
At the BOJ average selling rate, US$100 now costs about J$15,966, roughly J$62 more than on Monday. Rates quoted at bank and cambio counters typically sit above the BOJ average.
Remittance receivers saw little change, with US$100 converting to about J$15,787 at the average buying rate, compared with about J$15,795 on Monday.
A weaker Jamaican dollar can add to the cost of imported food, fuel and building materials. The higher policy rate may also be reflected in loan and mortgage rates in the months ahead.
For Jamaicans in Europe, the euro’s $2.12 rebound recovered most of Monday’s $3.00 drop, lifting the value of money sent home. Senders in the United Kingdom saw the pound slip 97 cents.
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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