The naira started the new week on a weak note as it traded at 1,533.67/$ at the Nigerian Foreign Exchange Market domiciled on the Central Bank of Nigeria website, compared to 1,532.51/$ on Friday, indicating a 0.08 per cent dip.

The exchange rate touched an intraday high of 1,535/$, and the lowest rate for the day was 1,532/$ amidst rising external reserves, which stood at $40.72bn as of last Wednesday.

At the parallel market, it closed at 1,543/$, stronger than the average from last week, which was 1,545/$.

The naira had been projected to trade mostly stable at the official window this week, supported by continued interventions of the Central Bank of Nigeria and improved FX inflows.

“However, headwinds from a stronger US dollar and softening crude prices could limit further gains. Barring major shocks in global markets, the currency should hold steady, with intermittent pressure from external factors. In the parallel market, rates are also projected to remain unchanged, unless speculative demand or supply constraints arise,” stated Cowry Research.

AIICO Capital, in its market update, indicated that the CBN in the past week sold about $166m during the week. The firm contends that in the interim, it expects the “FX market to retain its current stability, supported by the Central Bank of Nigeria’s ongoing policy refinements and fiscal measures aimed at sustaining liquidity.”

Echoing similar stability sentiments, Cordros Capital Limited, in a note, stated, “We expect sustained inflows from foreign portfolio investors due to existing carry trade opportunities and stronger market confidence.

Improving non-oil exports, as well as limited incentives for naira speculation, are expected to reinforce steady inflows from domestic sources.”