7 September, 2011, Sweetcrude, Lagos – International News
· CHF: The Swiss franc hovered above the Swiss National Bank’s minimum exchange euro exchange rate target and gained against the dollar on Wednesday, as the market weighed the central bank’s resolve a day after the SNB acted to cap the soaring currency.
· CNY: China’s yuan edged down against the dollar for the fifth consecutive day on Wednesday after the central bank set a weaker mid-point, as investors refrained from making aggressive bets ahead of key economic data releases due later this week.
· AUD: The Australian dollar powered up on Wednesday and dragged the kiwi higher as well after Australian economic data pointed to solid economic growth in the second quarter, cooling interest rate cut expectations.
Nigeria News
· Bonds – The market was quiet for a second day running yesterday with volumes still relatively low though there is a largely bearish sentiment pervading the markets.
· Bills – Bullish session yesterday as a lot of the excess liquidity put downward pressure on rates across all the maturities with most of the focus on the long dated higher yielding maturities. The bill auction comes up today with NGN30m, 50m and 30m on offer for the 91, 182 & 364days maturities respectively. We expect significant demand and therefore expect rates to dip from the last primary rates.
· Money Market – Unsecured O/N rates went up 50bps yesterday to close at 9.00%, though the market is still fairly liquid.
· Interbank/WDAS – $400m is on offer at today’s WDAS auction.
FX
Hi Low Close Prev.Close
USD/NGN 155.76/86 154.55/65 155.65/75 155.67/77
