Naira Dips Against Dollar as Interbank Turnover Declines
The naira dipped against the US dollar at the official window, as data published by the Central Bank of Nigeria (CBN) showed interbank liquidity slumped.
The official rate was quoted at ₦1,353.91/$ at the Nigerian foreign exchange market (NFEM) window, lost N5 due to increased demand for international payments.
The official rate was quoted between an intraday high of N1355.8000 on Thursday and an intraday low of N1350 per dollar, with data showing NFEM interbank turnover of N28.117 million, up from N66.084 million the previous day.
In the parallel market, the naira gained to N1380, reflecting divergent currency dynamics between the official and informal foreign exchange segments.
The U.S. Dollar Index is trading higher late in the session on Thursday as traders navigate through the key moving averages. After finding support last week at 97.632 inside the 98.097 to 97.496 retracement zone, the index is in a position to close out the week with a solid gain.
Iran seized two ships in the Strait of Hormuz, and peace talks went nowhere, even after Trump extended the ceasefire. That combination quickly put the risk premium back into the market.
Spot Brent Crude Oil pushed above $100, and traders stopped betting on a calm resolution. The dollar is the place they go when that happens, and that’s exactly where the money went Thursday. The U.S. Dollar Index is on track for its first weekly gain in a month
