Naira Slips as Interbank FX Turnover Reduces at Official Window
The naira, Nigeria’s local currency, slipped against the US dollar as FX turnover at the Nigeria Foreign Exchange Market (NFEM) window decreased today, according to an official publication.
In its daily FX publication, the Central Bank indicated that the official rate depreciated slightly by 0.02%, to ₦1,370.89 per dollar on Thursday, amid slight liquidity tightening.
Halting a previous soft rally, interbank FX turnover fell to $78.783 million across 103 deals, according to the Central Bank’s daily update, from $130.549 million the previous day.
International payment transactions were executed in the forex market between N1369.5000 per dollar on Thursday and N1372 per dollar before closing at N1371.
Conversely, in the parallel market, the local currency strengthened to N1375 per dollar amid limited demand for hard currency. The US dollar is trading quietly against the major currencies.
The euro is holding above $1.17, and sterling is holding above $1.35, but the market does not appear to be done probing these support areas.
Global oil prices settled lower as investors worried about possible U.S. interest rate hikes and awaited updates on a high-stakes summit in Beijing between U.S. President Donald Trump and China’s Xi Jinping.
Earlier on Thursday, Brent crude fell 1.90%, losing $2.05, to $105.72 per barrel as of 22:15 HRS, while U.S. West Texas Intermediate (WTI) dipped 1.15%, trading around $101.00 per barrel.
Gold prices slipped for a second session on Wednesday as war-driven inflation concerns weighed on expectations for interest rate cuts, with markets also watching the upcoming meeting between U.S. President Donald Trump and Chinese leader Xi Jinping.
Spot gold price lost 0.61%, to trade around $4,688.95/oz, while U.S. gold futures gained 0.22%, hovering around $4,697.10/oz. Some hope that China could exert pressure on Iran to reach a deal with the US, to end the war and lead to a resumption of energy flows through the Strait of Hormuz.
At the time of filing this report, Brent is hovering toward $105, and US West Texas Intermediate (WTI) holds near $101 as tankers begin testing passage through Hormuz. First HoldCo: Weak Earnings, No Dividend Make Uncomfortable Shareholders
