Naira up by 0.04% to N393.33/$ at I & E FX window

By Kayode Tokede

Naira at the Investors & Exporters Foreign Exchange (I & E FX) gained 0.04 per cent to close at N393.33 against the dollar.

Against other currencies, the Naira at I & E FX inched down by 0.08 per cent and 0.41 per cent against the euro and pounds to close at N459.63 and N513.00 respectively.

According to the FMDQ Exchange, a total of $36.07 million was traded by the investors and exporters on Tuesday

At the parallel market, the Naira lost 0.32per cent against the pound to close at N637, it closed flat against the USD at N475. Conversely, it inched up against the euro by 0.34 per cent to close at N580.

“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 money market rates rose today as Open Buy Back and Overnight rate increased by 50basis points and 25 basis points to three per cent and 3.50per cent respectively.

The bond market was negative today as yields increased across some maturities.

“We witnessed the yields on the 5yr and 10yr benchmark bonds inch up by five basis points and 12 basis points to 5.55 per cent and 7.69 per cent respectively, while the yield on the 7yr benchmark bond closed flat 6.52 per cent. In the near term, we expect market activity to be influenced by liquidity levels and foreign investor participation,” Investment One research added.