Forex Update Drop in Dollar sparks fears of Naira decline

Concerns have arisen over the state of the Naira due to a recent decline in the US Dollar.

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Naira and dollars play

Naira and dollars

(Nairaland)
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Concerns have arisen over the state of the Naira due to a recent decline in the US Dollar.

The Dollar has sunk to a two-month low as the currency market adopted an obviously dovish view on the United States monetary policy.

Data has shown the US economy practically stagnating in the first three months of the year.

Meanwhile, the development has led to increased pressure being placed equities on both sides of the Atlantic, according to Financial Times.

However, an analyst at Afrinvest West Africa Limited, Ayodeji Ebo has said that the drop in the US currency might not affect the naira immediately.

“The fall in dollar’s value may affect the FPI if it persists; it may not have direct impact on the naira immediately. However, it may have a very little impact if it persists for a long time,” he said.

Ebo however, added that the dollar decline could affect foreign portfolio inflow if it persists.

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