The Foreign Exchange (FX) market witnessed increased demand during the trading session on Thursday, driven by risk-off sentiment among Foreign Portfolio Investors (FPIs).

The heightened demand tilted the market toward the bid side, exerting upward pressure on rates. As a result, benchmark rates weakened across the board, shedding N3.24 to settle at N1,341.35/$

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Market Dynamics, Pressure

The official window saw an increased dollar demand during the trading session, largely attributed to “risk-off” sentiment among Foreign Portfolio Investors (FPIs).

The increased demand tilted the market towards the bid side, exerting pressure on the naira across official benchmarks.

* NFEM VWAP: Fell by ₦3.24 to close at ₦1,341.35/$.
* CBN Closing Rate: Declined by ₦6.00, ending the day at ₦1,346.00/$.

Throughout the session, intraday trades fluctuated between a high of ₦1,350.00 and a low of ₦1,332.00.

Market analysts suggest that the naira’s near-term direction will continue to be influenced by the prevailing dynamics of supply and demand as the apex bank maintains its efforts to stabilise the foreign exchange market.