I & E FX: Naira closes up by 0.75% to N386/$


By Kayode Tokede

The Naira at the investors & exporters ( I & E FX) window gained 0.75 per cent to close at N386 against the Dollar.

While Naira closed up by 0.66per cent and 0.75 per cent against the Euro and Pound to close at N452.94 and N500.31 respectively.

However, a total of $79.53million was traded by investors and exporters on Tuesday.

At the parallel market, while the Naira depreciated by 0.22per cent and 0.33 per cent to close at N461 and N592 against the Dollar and Pound respectively, it closed flat against Euro at N538.

“Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN foreign exchange policies,” analysts at InvestmentOne research explained.

Money market rates were non-directional today as Open Buy Back rate dropped by 17basis points to 2.33per cent, while Overnight rate increased by 17 basis points to close at 3.67 per cent.

The bond market was somewhat quiet today although yields declined at the long end of the curve. We witnessed the yields on the 5yr and 10yr benchmark bonds decline by one basis point each to 3.92 per cent and 6.36 per cent respectively, while the yield on the 7yr benchmark bond rose by 6bps to close at 5.80 per cent.

In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation.