Friday, November 11, 2016 3.20 pm / TheAnalyst
Today, Naira appreciated by 0.53% against the Dollar at the interbank FX market to close at N304.75, also traded northwards by 14.38% at the Parallel Market to close lower at N399.00.
According to analysis, Naira recorded strong and positive outlook against the dollar in both markets at the end of the week. The Nigerian currency appreciated against the Dollar by 7.34% at interbank FX market. Similar pattern was observed at parallel market as Naira firmed up against the Dollar by 14.93% for the week.
Further analysis revealed price recovery pattern when compared with trading pattern recorded in previous week as Naira experienced impressive stability in both markets during the week.
The sale of Dollar to theBDCs and the recent clamp-down on road-side currency traders had played significant role in modest stability observed in both markets. However, speculative tendency and scarcity of FX remain the driving factors depressing the value of Naira.
Furthermore, the Nigerian currency maintained its support level at N304.00 at interbank market while Naira recorded new support level at N399.00 at parallel market as trading pattern in both markets had indicated.
In addition, post-Flexible FX regime analysis revealed that Naira had lost 8.12% and 15.65% in value at both interbank and parallel markets respectively as at the end of trading session today. The spread between the interbank and parallel market rates contracted by 30.93% as against 42.60% recorded in previous week.