Naira static at N457/$ as dollar loses 0.2% against major currencies

The Nigerian Naira on Wednesday, March 15, remained firm against the American Dollar at the black or parallel segment of the Nigerian foreign exchange market, it however collapsed against the Pound Sterling and Euro.

While the Naira continues to trade at the rate of N457 per dollar, same rate as it was on Tuesday, March 14, it weakened against the Pound Sterling as it now trades at N550 as against the previous rate of N545. The Naira also dipped against the Euro as it now trades at N485, from the previous rate of N480.

Meanwhile, at the official interbank or spot FX segment of the market, the naira slumped to 306 per dollar from the 305.50 level it had traded for a very long time.

The Naira had on Tuesday, March 15, sustained its gain against the dollar at the parallel market trading for N457 (selling rate) at the parallel market, from the N455/460 it traded on Monday, while the Pound Sterling and the Euro closed at N547 and N480, respectively.

At the Bureau De Change (BDC) window, the Naira traded at N399 to a dollar, CBN controlled rate, while the Pound Sterling and the Euro traded at N547 and N480, respectively.

Meanwhile, the US dollar on Wednesday, March 15, weakened in European trade, staying range-bound ahead of an expected U.S. Federal Reserve interest rate hike.

The dollar index, which tracks the greenback against a basket of six rival currencies, was off 0.2 percent, at 101.50.

Against the yen, the greenback edged 0.1 percent lower to 114.65, remaining shy of last week’s peak of 115.51, its highest level since Jan. 19 as expectations built for the rate increase.

Fed fund futures price in a more than a 90 percent chance of a rise in rates on Wednesday, and attention is now focused on whether the U.S. central bank is now on course for regular three-monthly rises in the months and years ahead.

U.S. producer prices rose more than expected last month, marking the most robust year-on-year gain in nearly five years.

The Bank of Japan also began a two-day monetary policy meeting on Wednesday. It is expected to hold its policy steady and stress that inflation is nowhere near levels that justify talk of withdrawing its massive stimulus.

Sterling jumped to a week’s high of $1.2258 in early trade in Europe, rebounding from the previous day’s eight-week low hit on worries of a painful and prolonged Brexit process. It was last up just over half a percent on the day at $1.2230.

The euro edged up 0.3 percent to $1.0631. It remained below its Monday high of $1.0714, as concerns about Wednesday’s Dutch parliamentary election offset market speculation that the European Central Bank could be poised to wind down its stimulus programme.