By Kayode Tokede
The Naira at the parallel market on Tuesday traded flat against the Dollar and Euro, closing at N485 and N582 respectively.
The local currency lost 0.59per cent to close at N680 against the Pound sterling.
At the Investors & Exporters Foreign Exchange (I & EFX) window, the Naira lost by 0.21per cent and 0.18 per cent against the Dollar and Pound Sterling closing at N409.75 and N566.54 respectively, it inched up by 0.04per cent against the Euro printed N485.06.
On Monday, Nigerian NewsDirect had report that the Naira appreciated against the Dollar at the Investors and Exporters window to close at N408.90 to a dollar. This represents a N1.10 gain when compared to N410/$1 recorded on the previous trading day.
The opening indicative rate closed at N410.95 to a dollar on Monday. This represents a N1.82 drop when compared to N409.13/$1 recorded on Friday.
Also, an exchange rate of N412 to a dollar was the highest rate during intra-day trading before it closed at N408.90 against the Dollar. It also sold for as low as N390 against the Dollar during intra-day trading.
According to the FMDQ exchange, a foreign turnover of $32.33 million was traded at the I & E FX market on Tuesday.
The Central Bank of Nigeria (CBN) stated that Naira at the interbank market traded flat at N379 against the Dollar on Tuesday.
“Going forward, we expect the FX market to be dictated by heightened dollar demand and CBN FX policies,” analysts at investment one research explained.
However, the money market rates decreased today as Open Buy Back and Overnight rates both fell by 225basis points to close at 10.25per cent and 10.50 per cent respectively.
The bond market was mostly quiet today, although positive at the short end of the curve. We witnessed yields on the 5yr benchmark bond rise by 18basis points to print at 9.88per cent, while the 7yr and 10yr benchmark bonds closed flat at 10.10 per cent and 10.34 per cent respectively.
“In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation,” said analysts at investment one.