The Nigerian naira fell to its weakest in three weeks on the interbank market on Monday, as dollar demand by foreign exchange bureaux and importers outpaced supply of hard currency, traders said.

The naira closed at 157.55 to the dollar on the interbank market, weaker than 157.40 to the dollar it closed on Friday and the level last seen on September 25 when it closed at 157.65 to the dollar.

The currency however remained unchanged at the bi-weekly auction, as the central bank sold $162.2 million at 155.75 to the dollar, compared with $120 million sold at the same rate at the last auction on Wednesday.

Dealers said demand for the dollars from importers pushed down the local currency.

“We see the naira strengthening a little in the coming days as dollar sales by one of the oil companies and expected inflow from offshore investors buying local debt boosts supplies and helps calm the market,” one dealer said.

Traders said a unit of Shell sold some dollars toward the end of trading on Monday, but the effect would be felt in the market later in the week.

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