The Naira on Monday weakened by 0.31 per cent to close at N1,470.26 against the dollar from N1,465.68 against the dollar it closed last Friday.
The local currency at the Nigerian Foreign Exchange Market (NFEM) had appreciated by 1.52per cent last week to close N1,465.68 againstt the dollar from N1,488.26 against the dollar it opened for exchange.
The Naira appreciation lately has been attributable to sustained inflows from both offshore investors and International Money Transfer Operators (IMTOs).
For this week, analysts at Cordros Research maintained a positive outlook on the naira, supported by expectations of sustained foreign exchange liquidity.
“On the domestic front, rising non-oil exports and improving market confidence should underpin inflows, while externally, healthy foreign exchange reserves, a positive current account position, and a shift toward global monetary easing are expected to reinforce foreign investor sentiment and stimulate additional FX market inflows,” the firm added.
Meanwhile, the overnight lending rate contracted by 2bps to 24.9per cent in the absence of any significant inflows into the system.
The NTB secondary market traded with bullish sentiments as the average yield contracted by 13bps to 17.8per cent.
Across the curve, the average yield expanded at the short (+3bps) end, driven by profit-taking activities on the 73DTM (+30bps) bill but contracted at the mid (-42bps) and long (-3bps) segments, due to the demand for the 157DTM (-122bps) and 346DTM (-3bps) bills, respectively. Similarly, the average yield contracted by 3bps to 20.5per cent in the OMO segment.
Elsewhere, the FGN bond secondary market closed flat at 16.2per cent. Across the benchmark curve, the average yield expanded at the short (+1bp) end, due to sell pressures on the JAN-2026 (+4bps) bond, but closed flat at the mid and long segments.
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