The Naira fell to its weakest in six weeks against the United States dollar on the interbank market yesterday, on strong buying of dollars by some banks to fill their cus-tomers’needs and foreign investors selling down T-bills, traders said.
The local currency, according to Reuters news, weakened to N157.85 to the dollar, its lowest since March 28, from N157.55 to the dollar on Tuesday.
“We have a lot of demand in the market from some banks filling their customers’ requirements and with no significant dollar flow from oil companies,” one dealer said.
Traders said some offshore investors were selling a good chunk of their Treasury bill holdings.
The naira has seen strong support from offshore investors, investing in Africa’s second biggest economy’s local debt because of attractive yields, helping to support dollar supply to meet domestic demand.
“Some foreign investors are gradually exiting the treasury bills market and this has exerted pressure on the local currency,” another dealer said.
Dealers said the naira could cross the N158 to a dollar mark this week if there is no significant dollar flow to the market from oil companies.
On the official window, the Central Bank sold $150 million at 155.75 to the dollar, compared with $120 million at 155.75 to the dollar on Monday.