Naira trades flat at I & E FX window

By Aanu Olaleye, Abuja

Naira at Investors & Exporters Foreign Exchange (I& E FX) window on Tuesday closed flat the dollar at N411.50 but inched up by 0.11 per cent against the Euro to close at N487.54.

The local currency lost by 0.14per cent against the Pound closing at N571.89.

At the parallel market, the Naira appreciated by 0.59per cent against the dollar closing at N509, by 0.70per cent against the Pound at N705 and by 0.33per cent against the Euro at N598.

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

Money market rates increased today as both Open Buy Back and Overnight rates increased by 225basis points each to 7.50per cent and eight per cent respectively.

The bond market traded on a mixed note today as yields moved in different directions.

The yield on the 5yr benchmark bond close up five basis points at 11.79per cent, while the yield on the 7-year benchmark bond traded flat at 12.50per cent. Conversely, the yield on the 10yr benchmark bond traded down by 23basis points to trade at 12.42 per cent.

“In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation,” at Investment One research added.