The Nigerian naira firmed to its strongest in two weeks against the U.S dollar on the interbank market on Wednesday, supported by dollar sales by a unit of Chevron, traders said.

The currency closed at 157.20 to the dollar on the interbank, firmer than the 157.35 to the dollar it closed at on Tuesday.

The local unit also closed stronger at the bi-weekly foreign exchange auction, where the central bank sold $177.9 million at 155.77 to the dollar, compared with $200 million sold at 155.78 naira to the dollar at the last auction.

Dealers said a unit of Chevron oil sold $61 million to some lenders, boosting dollar liquidity in the market and providing support for the naira.

“We see the naira stabilising around the present level as we look forward to more dollar inflows from offshore investors buying local debt,” one dealer said.

The inclusion of Nigeria’s debt in JP Morgan index on Monday has continued to boost participation by foreign portfolio investors’ in local debt, bringing more dollars to the economy.

Dealers said plans by the NNPC to sell dollars in the market next week could further boost support for the local currency.

Source: Reuters (Reporting by Mayowa Oludare; Editing by Tim Cocks)