The foreign exchange (FX) market witnessed increased demand during Thursday’s trading session, driven by risk-off sentiment among Foreign Portfolio Investors (FPIs).
The heightened demand tilted the market toward the bid side, exerting upward pressure on rates. As a result, benchmark rates weakened across the board, shedding ₦3.24 to settle at ₦1,341.35/$.
The official window recorded increased dollar demand during the session, largely attributed to risk-off sentiment among FPIs.
The stronger demand tilted the market toward the bid side, exerting additional pressure on the naira across official benchmarks.
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NFEM VWAP: Fell by ₦3.24 to close at ₦1,341.35/$.
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CBN Closing Rate: Declined by ₦6.00, ending the day at ₦1,346.00/$.
Throughout the session, intraday trades fluctuated between a high of ₦1,350.00 and a low of ₦1,332.00.
Market analysts suggest that the naira’s near-term direction will continue to be influenced by prevailing supply-and-demand dynamics, as the apex bank maintains efforts to stabilise the foreign exchange market.