Naira for Dollar Rate Drops Slightly in Forex Markets
The naira-to-dollar rate little changed across foreign exchange (FX) markets on Thursday as demand and supply levels inched closer amidst fresh intervention.
Due to FX payment for year-end transactions and foreign portfolio selling activities, the naira rate has been under pressure in the absence of significant US dollar supply by actors in the official currency market.
The Central Bank of Nigeria (CBN) updated fx data showed that the spot fx rate depreciated marginally by 0.01% to N1,447.83 per dollar today over close-knit demand and supply.
Spot rate weakened but slightly at the Central Bank window, reflecting persistent demand pressure despite FX intervention and inflow from Foreign Portfolio Investors (FPIs).
Specifically, the official rate dipped by 18 kobo per USD to close at ₦1,447.8263/$, having traded within a range of ₦1,450.00 and ₦1,446.00 per US dollar during the session
The spot rate reached an intraday high of N1450 per dollar, the same rate quoted the previous day amid ongoing year-end activities. The year-end imports have been fingered as the key driver of surging international payments.
In the parallel market, the naira also fell slightly to N1460 per dollar, reflecting divergent currency dynamics between the regulated official segment and the informal foreign exchange market.
Global oil prices rose on Thursday on investors’ expectations for the Federal Reserve to cut interest rates, while stalled Ukraine peace talks tempered expectations of a deal restoring Russian oil flow.
Brent crude rose 76 cents, or 1.21%, to $63.43 per barrel, while U.S. West Texas Intermediate (WTI) gained 89 cents, or 1.51%, to $59.84.
Similarly, gold prices ticked up, as rising U.S. Treasury yields offset support from a weaker dollar, while markets await Friday’s U.S. inflation data for clues on the Federal Reserve’s policy outlook ahead of its December meeting.
Spot gold increased by 0.18% to $4,213.81/oz, while U.S. gold futures gained 0.28% to $4,244.50/oz. Ooil may firm further on geopolitical-driven supply fears, while gold may remain under pressure as investors await fresh U.S. data and the upcoming Federal Reserve meeting. Money Market Investors Get Treasury Rate Surprise
