The American Dollar Index tracks the dollar’s strength relatively against a bouquet of other major currencies.
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.
