The Naira weakened significantly against the US dollar on the official market on Tuesday, market rates published on the FMDQ website showed, although the dollar index fell sharply on Tuesday.
The official market, the naira opened at N769.66 to $1 and closed at N775.34 to $1 on Tuesday. The rate represents a 0.42% drop from 772.12 naira to the dollar, which traded in the previous session on Monday.
A robust demand for the dollar in Africa’s largest economy on Tuesday kept the naira on a decline as it exchanged for 920–925 naira to $1 in the black market. Dealers acquire from willing sellers at N/$915 and sell to willing sellers at N/$920-925.
On Tuesday, the dollar index had its worst day in a month and a half as speculators reduced their positions as JOLTS job postings fell to a 2-1/2 year low.
The index experienced its worst day in a month and a half on Tuesday after currency traders reduced their bets on future rate increases in the United States due to a decline in JOLTS job postings to a 2-1/2 year low.
Pundits anticipate that USD short sellers jump on any data that supports the JOLTS employment report because traders are now sensitive to weaker U.S. data in anticipation of the Fed’s peak rate