Daily FX Rate: Naira Rises to N1,448/$ in Official Market
The naira rose against the dollar in the Nigerian Foreign Exchange Market (NFEM) on the back of strong US dollar liquidity in the currency market.
On Tuesday, the Central Bank reported that the official spot FX rate appreciated 67 basis points (bps) to close at ₦1,448.2050/$ compared with the previous position.
The exchange rate settled at ₦1,448 per US dollar after trading within a range of ₦1,445.00/$ and ₦1,456.00/$ during the session.
Updated FX data revealed that external reserves remained unchanged amidst the plan to take on additional external borrowing. Nigeria’s gross external reserves remained at $42.87 billion amidst crude oil price fluctuations in the global commodity market.
Oil prices slipped further on Tuesday, marking a third straight day of declines as investors considered the impact of U.S. sanctions against Russia’s two biggest oil companies on global supply, along with a potential OPEC+ plan to raise output.
Brent crude shed 54 cents, or 0.83%, to $64.36 per barrel, while U.S. West Texas Intermediate (WTI) dipped by $1.23, or 2.01%, to $60.08.
Similarly, gold slipped to a three-week low as hopes for progress in U.S.–China trade talks dimmed its safe-haven allure, while investors’ focus tipped over to the Federal Reserve’s interest rate decision this week.
Spot gold dipped 1.09% to $3,954.91/oz, while U.S. gold futures receded by 1.06% to $3,970.24/oz. “We anticipate a cautious outlook tomorrow as oil prices fall on oversupply concerns while gold receives modest support from a softer U.S. dollar and interest-rate cut expectations,” AIICO Capital said in a note.
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