Foreign exchange dealers are expecting the naira to be range-bound this week after the Nigerian National Petroleum Corporation sold close to $200m to some banks.
Reuters reported that the naira closed at N162.40 to the dollar, little-changed from N162.45 the previous day.
“We don’t see the naira losing much value in the coming days because of possible further dollar flows from offshore investors participating at the bond auction next week,” one dealer said.
The currency has treaded in a range of N162-N163 range over the last two weeks.
Reuters reports that receding concerns about political risk in Kenya are likely to continue to lift the shilling in the coming week, but lingering worries over national security in neighbouring Uganda will weigh on that country’s currency.
Commercial banks quoted Kenya’s shilling at 87.65/75 to the dollar on Thursday, up from 87.85/95 a week ago, with further gains seen next week.
“Politically, I think the environment has cooled off,” a senior trader at I&M Bank, Mr. Andlip Nazir, said, predicting the shilling would hit a high of 87.20 next week.
The currency had weakened ahead of an opposition rally on Monday against growing insecurity, corruption and rising food prices, but it recovered after the event passed more peacefully than many had expected.
