The naira weakened against the dollar, extending its worst monthly performance since February, amid speculation foreign investors sold Nigeria’s debt and as oil prices declined.
The currency dropped for a second day as emerging-market stocks fell, heading for the biggest monthly loss in a year. Yields on the 16.39 per cent domestic bonds due January 2022 rose to a one-month high on Thursday, according to data compiled by Bloomberg.
Emerging-markets strategist at Standard Bank Group Limited in London, Mr. Samir Gadio, said, “It looks as if the global risk-off environment is feeding into Nigerian assets, broadly in line with what other emerging markets are experiencing.
“As local market players witness the shift in the offshore positioning, they are also likely to push dollar-naira higher.”
The naira weakened 0.1 per cent to N158.63 per dollar in Lagos, the commercial capital, taking its monthly decline to 0.4 per cent.
The yield on the 2022 securities rose 23 basis points, or 0.23 percentage point, to 11.86 per cent on Thursday, the highest since April 29, according to the data compiled by Bloomberg.
Bonny Light crude, one of Nigeria’s main export grades, fell for a third day, dropping 0.6 per cent to $103.41 per barrel. Nigeria depends on oil shipments for 80 per cent of government revenue and 95 per cent of its export income.