THE Naira declined 0.48 percent against the dollar yesterday at the Investors and Exporters foreign exchange (FX) window, trading at N419 to the dollar, down from N417 on Friday.
On Monday, the open indicative rate was N419 to the dollar. The highest rate reported during the day’s trade was N423.00 to the dollar, before the rate ended at N419.00.
During the day’s trade, the Naira fell as low as 410.84 to the dollar. On Monday, the official Investors and Exporters window traded a total of 53.15 million dollars in foreign exchange.
The market expects the local currency to tumble further as the apex bank chief, Godwin Emefiele’s next step is unpredictable amid his presidential ambition. Meanwhile, financial analysts predict that the naira would be depreciated in the near future due to dollar scarcity and increased demand.
Following moderate liquidity strain in the financial system, short term rates in the money market adjusted upward and according to data from FMDQ Exchange, the overnight lending rate increased by 141 basis points to 6.3 percent.
Cordros Capital noted in a market report that trade in the Treasury bills secondary market was optimistic, with the average yield falling 3 basis points to 3.7 percent.
According to dealers’ notes, the average yield was steady at the short and long ends of the curve, but contracted at the mid (-10bps) segment due to demand for the 157 day to maturity (-58bps) bill.
Analysts revealed also that the average yield in the open market operation (OMO bills) segment was steady at 4.1 percent.
Trading in the bond market finished with mixed feelings, with the average yield remaining constant at 11.1 percent. The average yield on the benchmark curve fell at the short end (-1bps) as investors sought the MAR-2024 (-3bps) bond.
However, investors sold off the APR-2037 (+2bps) bond, causing the average yield to rise (+1bp). While at the mid-segment, the average yield remained unchanged.
