The naira depreciated by five kobo following a 25 per cent rise in foreign exchange demand in the official market .
At the Wholesale Dutch Auction System (WDAS) session conductedÂ by the Central Bank of Nigeria (CBN) on Monday, demand rose to $311.250 million from $249.303 million last Wednesday. Consequently, the official exchange rate rose to N148.6 per dollar from N148.62 per dollar.
On the international scene,Â the dollar rose from a two-month low versus the euro and for a second day against the yen as declines in equities and U.S. housing starts last month renewed concern that the global economic recovery is faltering.
The Canadian dollar fell after the nationâ€™s central bank said it may slow the pace of interest-rate increases after boosting the target for the second time in less than two months. The euro weakened agaist most of all its most traded counterparts after Hungaryâ€™s borrowing costs rose to a 19-week high at its first debt auction since international creditors suspended talks with the government.
â€œWeâ€™re starting to see some further signs of weakness and thatâ€™s going to continue to drive the yen crosses and support the dollar,â€ said Brian Dolan, chief strategist at FOREX.com, a unit of Ofailure in the Hungarian debt auction and that is rekindling some concern in the European debt crisis.â€
The yen declined to 86.90 per dollar at 9:53 a.m. in New York, from 86.69 yesterday, after climbing to 86.27 on July 16, the strongest since Dec. 1.
The euro dropped 0.4 percent to $1.2889, after reaching $1.3029, the highest level since May 10. Canadaâ€™s dollar fell 0.1 percent to C$1.0560 per U.S. dollar after earlier strengthening as much as 0.6 percent.