Forex: $159.41 to One US Dollar

KINGSTON, Jamaica — The United States (US) dollar on Tuesday, October 20, ended trading at $159.41, up 43 cents from Friday’s close of $158.98, according to the Bank of Jamaica’s (BOJ) daily foreign exchange trading summary.

Meanwhile, the Canadian dollar ended trading at $113.85, up from $112.99, and the British pound ended at $213.32, up from $209.63. The euro closed at $182.34, down from $183.00.

Tuesday was the first trading session of the week, after the market closed on Monday, October 19, for National Heroes Day. The increase recovered 43 of the 96 cents the US dollar lost over the previous week, leaving it below the $159.94 it fetched on Friday, October 9.

The rise followed two days of US dollar sales by the BOJ, which sold US$30 million on Thursday and US$40 million on Friday through its B-FXITT facility. The central bank’s website listed no new B-FXITT sale for Tuesday.

Oil prices, which affect Jamaica’s fuel import bill, remained high. Brent crude stood at US$112.85 a barrel on Tuesday morning, up from US$110.10 a day earlier and US$61.25 a year ago, according to Fortune.

The Statistical Institute of Jamaica reported last week that annual inflation reached 8.6 per cent in September, above the BOJ’s target range of four to six per cent.

The BOJ’s policy rate, which influences what lenders charge on loans and mortgages, stands at 6.00 per cent. The US Federal Reserve is scheduled to announce its next decision on October 28, ahead of the BOJ’s own decision on November 18.

At Tuesday’s BOJ average selling rate, US$100 cost $15,940.65, about $42 more than on Friday. A US$100 remittance converts to $15,786.48 at the average buying rate. Counter rates at commercial banks and cambios usually sit above the BOJ average.

The pound posted the day’s largest move, with its selling rate up $3.69. However, its average buying rate, which applies to money sent from the United Kingdom, slipped to $206.97 from $208.25 on Friday.

A weaker Jamaican dollar can add to the cost of imported goods, including food, fuel and the building materials used in construction and home repairs.

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.