Naira Appreciates to N1,347 on Strong US Dollar Supply
In the official foreign exchange market, the naira appreciated to N1,347 per dollar on Monday, reflecting the absence of significant pressures from international payments.
The sufficient US dollar volume bolstered positive exchange rate movement at the Nigerian Foreign Exchange market (NFEM), supported by inflows from foreign investors.
The naira gained ₦7.64/US$. to close at ₦1,347/US$ compared with ₦1,355.41/US$ previously recorded. Based on data from the CBN, Fx largely traded within the low and high bands of ₦1,342.50/US$ and ₦1,353.00/US$, respectively.
The currency’s gain was supported by improved FX supply levels after last week’s elevated demand pressures. Intraday trading saw the Naira fluctuate within a band of ₦1,342.50/US$ to ₦1,353.00/US$.
The spot rate surged by 0.72% to ₦1,383/$ in the parallel market, reflecting improved currency sentiment across both the regulated official segment and the informal foreign exchange market.
Latest update revealed that Nigeria’s gross external reserves stayed stronger, adding $135.76 million day-on-day, bringing the total reserves to $47.81 billion.
Global Oil prices edged up on Monday as investors weighed the market implications of upcoming U.S.-Iran talks aimed at de-escalating tensions against a backdrop of expected OPEC+ supply increases.
Brent crude spiked 140bps or 95 cents, hovering around $68.70 per barrel, while U.S. West Texas Intermediate (WTI) rose by 146bps, to around $63.81 per barrel. Conversely, gold prices fell marginally on Monday, starting the week with indications of improving risk sentiment and less safe-haven demand.
Spot gold price lost 49bps to $4,995.68/oz, while U.S. gold futures edged lower by 45bps, hovering around $5,016.31/oz.
Analysts at AIICO Capital Limited expect oil market to remain cautiously optimistic ahead of U.S – Iran talks. Gold market to sustain bearish momentum barring any geopolitical risks. Fidelity Bank Gains 8% as Investors Price in Earnings Outlook
