Naira Rises after CBN Sells $50m to Boost FX Supply
The naira rebounded against the US dollar at the Nigerian foreign exchange market a day after the Central Bank (CBN) sold $50 million to authorised dealer banks to strengthen supply.
The local currency exchange rate came under pressure as demand for the US dollar surpassed FX supply in the local currency market. The naira appreciated by 0.14% to ₦1,452.13/$ in the official window and strengthened 0.32% to ₦1,469/$ in the parallel market, reflecting easing pressure and improving sentiment.
Trading data from the CBN showed that spot FX rate touched intraday high of N1459.99 per dollar at the official window, compared with N1460.50 in the previous day session.
Intraday spot FX rate fluctuate between N1450 (low) and N1499.99 (high) and closed at N1459.95 per dollar. The Dollar Index rose by about 0.65%, its largest increase since late September.
More notable, it settled above the 200-day moving average for the first time since early March. The US dollar is little changed against most of the G10 currencies as the North American session is about to get underway.
There were some follow-through greenback gains after yesterday’s advance but limited. Light crude oil futures traded slightly higher on Thursday after Wednesday’s sharp decline drove buyers back into the short-term retracement zone at $59.23 to $58.44.
The November 13 main bottom at $58.07 also provided support, giving traders a clear reference point after the prior session’s sell-off. The rebound came as broader crude markets attempted to stabilise following a 2.1% drop driven by renewed geopolitical speculation. GTCO Slides Amidst Multiple Block Transactions
