Naira weakens ahead of Nigerian interest rate decision

Naira and dollar currencies

Nigeria's naira eased to its weakest in almost a month on Tuesday, driven by demand for dollars from offshore investors and importers ahead of a central bank meeting at which there is a chance that interest rates could rise.
At 1006 GMT, the local currency was trading at 165.70 to the dollar, its weakest intraday level since Feb. 27 and down from the 164.95 it closed at on Monday.
"There is a strong demand for the dollar in the market from those who are remitting dividends and bureau de change operators buying for their customers," one dealer said.
Dealers said some risk-averse importers were also buying dollars early ahead of the due date for their invoices, given uncertainty surrounding central bank policy after the suspension of its governor, Lamido Sanusi, last month.
Most analysts expect the central bank to hold rates at 12 percent for the fifteenth time in a row at Tuesday's bi-monthly MPC meeting.
But some predict it will sharply hike them in a bid to defend the ailing naira.