Naira depreciates by 0.06% at I & E FX window

By Kayode Tokede

Naira at Investors & Exporters Foreign Exchange (I & E FX) window depreciated by 0.06 per cent to close at N411.75 on Wednesday.

The local currency also lost by 0.20 per cent against the pound sterling close at N565.40 but gained 0.11 per cent against the euro to close at N481.09.

Naira appreciated against the dollar at the I&E FX window on Tuesday/ to close at N411.5/$1. This represents a 17 kobo gain when compared to the N411.67/$1 that was recorded on Monday.

Meanwhile, the foreign exchange turnover at the I&E $113.38million on Wednesday.

The fx turnover at the I&E window had declined by 3.4per cent on Tuesday / from $117.17 million recorded on Monday to $113.17 million on Tuesday.

At the parallel market, while the Naira depreciated by 0.39per cent and 0.14 per cent against the Dollar and Pound sterling to close at N517 and N707 respectively, it appreciated by 0.33 per cent against the Euro to close at N603.

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

Money Market rates rose today as Open Buy Back and Overnight rates increased by 50basis points and 21 basis points to close at 17.50 per cent and 17.88 per cent respectively.

The bond market traded on a flat note today, as yields were generally unchanged across the curve.

The yields on the 5yr and 7yr benchmark bonds closed flat at 11.15 per cent and 11.90 per cent respectively, while the yield on the 10yr bond shed two basis points to 12.15 per cent.

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