Naira Gains N1.25 on US Dollar at Spot Market

By Adedapo Adesanya

The Naira strengthened against the US Dollar as it soared by N1.25 or 0.30 per cent at the Investors and Exporters (I&E) window of the foreign exchange market on Friday, June 10.

At the specialised window, where investors source FX for approved needs, the local currency was exchanged at N421.25 compared with the previous day’s N422.50/$1.

This happened on the back of a 31.6 per cent or $48.6 million reduction in the value of forex trades at the spot market during the session. Transactions worth $105.11 million were carried out during the session compared with the $153.71 million achieved in the preceding day.

However, the Naira depreciated at the Peer-to-Peer (P2P) segment of the FX market yesterday as it lost N1 against the Dollar to settle at N616/$1 versus N615/$1 on Thursday.

In the interbank window, the local currency traded flat against the Pound Sterling at N521.49/£ and recorded the same outcome against the Euro as it remained unchanged at N446.39/€1.

At the cryptocurrency market, the majority of the tokens monitored by Business Post closed bearish on Friday, following the increase in the inflation rate in the United States by 1.0 per cent.

The data, which was released yesterday, suggests that the US Federal Reserve, its equivalent of a central bank, could continue with its 50 basis points interest rate hikes through the next three months.

These fears weakened the TerraUSD (UST) further by 8.2 per cent to $0.0099 as Solana (SOL) went down 8.2 per cent to trade at $37.22, with Ethereum (ETH) losing 6.8 per cent to sell at $1,670.06.

In addition, Cardano (ADA) fell by 6.7 per cent to $0.5898, Ripple (XRP) recorded a 5.3 per cent fall to trade at $0.3853, Litecoin (LTC) went down by 4.6 per cent to trade at $57.25, Dogecoin (DOGE) saw a 4.2 per cent slump to trade at $0.0760, Bitcoin (BTC) retreated by 2.7 per cent to $29,285.07, while Binance Coin (BNB) recorded a 1.3 per cent loss to sell at $287.98.

The US Dollar Tether (USDT) was the only gainer as it moved higher by 0.01 per cent to settle at $0.9993.