Tag
DOLLAR
The liquidity in the foreign exchange market appears to have improved, the volatility and uncertainty of the market seem to still persist.
The dollar traded at $1.1234 per euro on Thursday, yen also increased to 106.79 against the dollar, while Sterling went down to $1.2533
The drop in the value of the naira can be attributed to the pressure in the foreign exchange.
Naira gained against the dollar when compared to N386.50 to a dollar it exchanged on Monday.
Fears of a fresh wave of virus infection and renewed lockdown forced the dollar to edge higher.
Oil prices continued dropping as investors and traders weighed on oversupply prospects, dollar strengthening, and refining margins
American dollar ended the week cumulatively lower as the possibilities of the second wave of COVID-19 pandemic limited its upside.
Nigerians hoping for transactions via the U.S dollar to countries like France would have the need to pay fewer dollars to fulfill such transactions.
The 12-month naira forwards increased to N454.50 per dollar on Wednesday, from a high of N522.56 on April 20.
The reopening of the economy is expected to put additional pressure on the naira as more businesses try to meet up with accumulated obligations.
U.S dollar dropped on Monday morning as global investors and currency traders got more optimistic about the global economic recovery
The Index that tracks the American dollar against a bouquet of other major currencies (like the Japanese yen, British pound sterling, Swedish Krona, Euro), closed 0.10% lower to trade at 98.275 after global investors retreated from the safe-haven asset.