19 October 2011, Sweetcrude, Lagos- International News
· EUR – The euro rose as short covering and buying by macro funds kicked in following a steep fall in the dollar versus some Asian currencies after Japan and South Korea agreed to bolster their currency swap arrangements in a bid to help ease market tension.
· AUD: the Aussie Dollar edged higher following gains in some Asian currencies after Japan and South Korea agreed to bolster their currency swap arrangements in a bid to help ease market tension..
· INR: the Indian rupee strengthened supported by local share gains on strong quarterly earnings and on hopes of foreign fund inflows, but dollar demand for gold buying is seen limiting the rise.
Nigeria News
· Bonds – Trading activity continues to be very patchy and volatile as the market tries to find new levels. The shocks which came from the CBN activity continues to make price discovery very difficult. The bond auctions come up on Wednesday and this will dictate the direction going forward..
· Bills – In continuous reaction to the spike in rates at the primary auction, secondary market trading was very thin yesterday. With the market still struggling to come to terms with the 275bp rate hike at the extra ordinary MPC meeting on Monday. With FAAC set to hit the system in the coming days the CBN has continued to squeeze an already short system in anticipation selling 58 day bills at 17%
· Money Market – OBB went up 200bps to close at 14.00% with unsecured rates also up about 150bps to 15.00% as liquidity thinned out at the end of last week on the back of CBN activity. Rates are expected to remain high over the week.
· NGN Foreign exchange –
FX
Hi Low Close Prev.Close
USD/NGN 162.80/90 159.05/15 159.55/65 162.05/95
