Nigeria’s naira eased against the U.S. dollar on the interbank market on Wednesday as importers started to lock-in their hard currency needs at favourable rates.

The local currency closed at 160.35 to the dollar compared with Tuesday’s close of 159.8 naira.

Traders said some importers took advantage of the increased dollar liquidity in the market to buy more hard currency at favourable prices, exerting pressure on the local currency.

The naira firmed to its strongest in two weeks on Tuesday, buoyed by ample dollar sales by multinational oil companies.

Dollar liquidity is gradually thinning out due to buying pressure from importers, dealers said, as no additional dollar inflow came into the system on Wednesday.

Traders expect the naira to trade within the band of 160-160.6 naira this week, unless additional dollar inflows come into the system and support the local unit.

Source: (Reporting by Oludare Mayowa)