The naira rose against the US dollar at the Nigerian Foreign Exchange Market (NFEM) on Monday to N1,354 as offshore and local inflows bolstered FX supply.
Naira maintains a streak despite the absence of FX interventions. The substantial FX volume enhanced the positive momentum witnessed in the official window last week, with the naira breaking out another resistance during the intraday trading session.
The Daily FX update from the Central Bank indicated that the naira appreciated by 86bps, or ₦11.80, against the greenback, supported by strong supply from Foreign Portfolio Investors (FPIs) and local participants.
Based on data from the CBN, the local currency traded within the low and high bands of ₦1,352.50/US$ and ₦1,360.00/US$, respectively.
Analysts expect the Naira to continue trading in line with prevailing market demand and supply dynamics, supported by an improving external reserves position.
Foreign reserve was last reported at US$46.91 billion following successive accretion from across sources, including but not limited to hydrocarbon sales and remittances
Reserves have maintained an upward trend since the start of the year, and we expect this current level to remain firm in the near term, supported by stronger foreign inflows driven by higher oil receipts, improved FPI participation, and consistent CBN FX management.
In the global commodity market, oil prices rose more than 1% on Monday after the U.S. Department of Transportation issued an advisory to U.S.flagged vessels to stay as far as possible from Iranian territory while voyaging through the Strait of Hormuz and Gulf of Oman.
Brent crude gained 1.57% or $1.07, hovering around $69.12 per barrel, while U.S. West Texas Intermediate (WTI) climbed 1.42%, to around $64.45 per barrel.
Similarly, gold prices jumped as investors looked ahead to key economic data releases due out of the US this week. Spot gold price dipped 43bps to $5,058.01/oz, while U.S. gold futures shed 85bps, hovering around $5,100.71/oz.
Analysts expect oil prices to remain pressured on easing geopolitical risks, while broader markets stay cautious ahead of key macro signals. Money Market Rates Fall, Banks Step Up Cash Lodgment with CBN
