The Ghana cedi will recoup some losses in the coming days following an improved performance against the US dollar last week.
The local unit gained 0.10% against the American greenback last week to close trading at GH¢15.69. This performance signalled good times ahead.
The cedi held ground against the dollar as soft US inflation data spurred bets that the Federal Reserve would ease interest rates in September 2024.
This caused the American greenback to dip against a basket of currencies.
Analysts, however, expect the local unit to trade sideways against the American greenback as corporate demand pressures appear to be resurfacing in the market.
Conversely, the local unit depreciated by 0.30% and 0.63% week-on-week against the euro and the pound after data showed the UK economy grew faster- than- expected in May 2024.
This potentially lowered the chances of an August 2024 UK rate cut and caused the pound to strengthen.
Presently, the cedi is going for GH¢15.65 against the US dollar. It has since January 1, 2024 lost 20% to the American greenback.
Cedi to recoup some losses
Meanwhile, Fitch Solutions has indicated that the cedi will recoup 9.0% loss to the dollar, narrowing it yea- to-date loss to about 10%
“We project the cedi to appreciate by 9.0% to CCEPTED GH¢13.5/US dollar by year-end, from the July 9 spot of 14.7/US dollar. On July 8 [2024], Ghana reached an agreement with international bondholders to restructure US$13 billion worth of external debt, a process that should be concluded by the end of September. We believe that this will improve investor sentiment towards Ghana, improve capital inflows and provide appreciatory pressure to the unit”.
“Moreover, the start of a monetary easing cycle in the US in September will likely put some pressure on the dollar and improve investor appetite for higher-yielding emerging market assets, providing tailwinds to the cedi”, it concluded
Latest Stories
-
I was suspended in SHS after making a dance video with my uniform – Lisa Quama
37 mins -
GTA gears up for National Tourism Awards 2024
40 mins -
Prof. Gyampo criticises vacating of MP seats due to cross-carpeting
3 hours -
A critical examination of Speaker Alban Bagbin’s ruling on potential breaches of Article 97(1)(G) and (H)
4 hours -
Trump calls 6 January ‘day of love’ when asked about Capitol riot
5 hours -
UTAG calls for immediate prosecution of persons arrested for engaging in galamsey
5 hours -
Prof Ransford Gyampo: And Speaker Bagbin declared 4 seats vacant…
5 hours -
Secret Service has ‘deep flaws’ and must overhaul leadership, report says
5 hours -
Kenya’s deputy president sacked while in hospital
6 hours -
One Direction ‘devastated’ at Liam Payne’s death
6 hours -
Ghana’s debt to ease to 70% of GDP in 2024; another debt default unlikely – Fitch
6 hours -
Meta fires staff for buying toothpaste, not lunch
6 hours -
U-20 AFCON 2025Q: Afriyie’s brace earns Ghana draw against Benin
6 hours -
US ‘click to cancel’ rule to ban subscription traps
6 hours -
Speaker is completely out of order; he is wrong on this ruling – K.T Hammond
6 hours