Naira appreciates by 0.13% to N394.00/$ at I&E FX window

Naira at the Investors & Exporters Foreign Exchange ( I & E FX) window on Tuesday strengthened by 0.13 per cent to close at N394 against the dollar.

The local currency also closed up by 1.22 per cent and 0.97per cent against the Euro and Pound sterling to print at N462.16 and N521.85 at the Investors and exporters foreign exchange market respectively.

According to FMDQ, a total turnover of $108.34million was traded by investors and exporters on Tuesday.

The FMDQ Exchange disclosed that a total turnover of $39.99 million was traded at the I & E FX window on Monday.

FMDQ, foreign exchange turnover declined from $77.04/ million/ on last Thursday, to/ $44.51 million/ on last Friday.

At the parallel market, the Naira closed down by 0.46 per cent, 0.86per cent and 0.63 per cent against the pound sterling, euro and dollar at N650, N585 and N480 respectively.

“Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies,” analysts at Investment One research added.

However, the overnight lending rate declined by 125basis points to 5.3per cent, following inflows into the system from OMO maturities (N190.15 billion).

The NTB secondary market traded in a lull, with many participants staying on the sidelines as they anticipate the renewed supply from the CBN at tomorrow’s auction.

The market ended on a bearish note with average yield expanding by three points to 0.6 per cent.

Across the curve, average yield was flat at the short end but expanded at the mid (+1bp) and long (+7basis points) segments, following sell-offs of the 184DTM (+4bps) and 212DTM (+11bps) instruments, respectively. Similarly, average yield expanded by 7basis points to 1.3 per cent at the OMO secondary market.

The Treasury bonds secondary market remained bearish in today’s session, as average yield expanded by 26 basis points to 7.3 per cent.

Across the curve, average yield expanded at the short (+28 basis points) and long (+39 basis points) end, due to profit-taking on the JAN-2026 (+86 basis points) and APR-2049 (+101bps) bonds, respectively.

Conversely, average yield pared at the mid (-1 basis point) segment, as a result of buying interest in the JUL-2030 (-3 basis points) bond.