Ghana cedi dips to new low vs dollar

Mon Jun 18, 2012 3:59pm GMT
 

ACCRA, June 18 (Reuters) - The Ghana cedi currency extended its slide against the dollar to new lows on Monday, driven down largely by strong demand for the greenback from importers and manufacturing, traders said.

Ghana's local unit has been under pressure all year despite the central bank's efforts to curtail the fall, including a third rate hike for the year last week.

Jacob Brobbey of Barclays Bank Ghana said the cedi was trading at 1.9275/00 to the dollar after opening at 1.9270/95. Another trader who asked not to be named said the range was 1.9100/1.9300. Reuters data showed the cedi hitting 1.9300 in morning trade.

"We remain bearish on the cedi but the local unit may trade relatively stable in the 1.9230-1.9350 band this week," Brobbey said.

"We expect the excess demand over supply condition to persist throughout this week as the market looks up to the mining sector for improved FX flows," he said.

The second trader said dollar demand was coming from importers and the cedi risked falling yet more in the week.

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(For more Reuters Africa coverage and to have your say on the top issues, visit: af.reuters.com) (Reporting by Christian Akorlie)

 
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