Naira Drops Against US Dollar Across Nigerian Forex Markets
The naira depreciated slightly at the official window, maintaining subtle fluctuation since the beginning of the week. The daily FX rate released by the Central Bank of Nigeria (CBN) suggests exchange rate pressure remains insignificant due to healthy dollar supply at the official window.
CBN report indicated that the spot FX rate dropped by 0.09% to ₦1,420.69/$ at the official window. The exchange rate touched an intraday high of N1423, and closed the day at N1423.
With an intraday high of N1419 per dollar, some analysts said increased demand for dollar was stemmed down by naira demand by foreign portfolio investors that participated in the OMO bills.
In addition, the market has seen increased FX inflows from exporters, supported by sustained dollar volume from non-bank corporate, individual and other sources.
In the parallel market, the naira fell to ₦1,480/$, reflecting divergent currency dynamics between the regulated official segment and the informal foreign exchange market.
Oil prices rose on Wednesday as investors assessed a temporary shutdown at two large fields in Kazakhstan, expectations of a build in U.S. crude inventories and fresh geopolitical tension tied to U.S. tariff threats in its bid to gain control of Greenland.
According to market report, Brent crude climbed by 1.39% or 89cents, hovering around $65.08 per barrel, while U.S. West Texas Intermediate (WTI) rose slightly by 0.23%, to around $60.50.
Similarly, Gold surpassed $4,800 an ounce for the first time on Wednesday as geopolitical tensions including U.S. President Donald Trump’s bid to control Greenland drove safehaven demand.
Spot gold price climbed 115bps to $4,818.34/oz, while U.S. gold futures followed, rose by 120bps to $4,823.20/oz. Analysts expect market to trade cautiously with a slight risk-off tone as strong gold prices signal safe-haven demand while weaker oil prices weigh on sentiment.
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