Naira Extends Rally, Spot FX Rate Appreciate Sharply to N1565
The naira extended rally in the foreign exchange market, thanks to strong US dollar volume supply, which eclipsed entire FX log by the eligible companies. The local currency has remained on growth path, recording six days gaining streak at the Nigeria foreign exchange market, an official spot rate platform for the Central Bank.
The USD/NGN pair traded between $/₦1,556.50 and $/₦1,577.00 during the session, according to Investment firm AIICO Capital Limited. The exchange rate movement translates to an 87- basis-point appreciation as the currency closed at $/₦1,565.4625. AIICO Capital Limited said the Naira is expected to maintain its current trading range.
The nation’s external reserves dwindle to $38.381 billion as the Apex Bank continue to inject US dollar into the forex market amidst oil price fluctuation. Market report revealed that oil prices dipped on Wednesday due to a larger-than-expected increase in U.S. gasoline and diesel inventories, which added to supply concerns amid trade tensions and OPEC+ output hikes.
Brent crude slipped 28 cents to $65.35 a barrel while U.S. West Texas Intermediate crude eased 8 cents to $63.33. Meanwhile, gold prices rose 1% as a weaker dollar and disappointing U.S. economic data supported safe-haven demand.
Spot gold gained 0.6% to $3,373.06 an ounce after rising as much as 1% earlier. U.S. gold futures also climbed 0.6% to $3,398.00. Market upside appears constrained, with persistent oversupply conditions and moderating demand growth likely to cap gains. FG Begins Payment of N44,000 Minimum Wage Arrears to Ex-Corps Members
