The Naira depreciated against the U.S. dollar at the parallel market, exchanging at N1,400 per dollar on Tuesday, compared with N1,390 recorded last weekend.
The development represents a N10 decline in the value of the local currency in the informal foreign exchange market.
However, the Naira recorded an appreciation at the official foreign exchange window.
Data obtained from the Central Bank of Nigeria (CBN) showed that the Nigerian Foreign Exchange Market (NFEM) closing rate improved to N1,356 per dollar from N1,365.4 per dollar recorded at the close of trading last weekend.
The figures indicate that the local currency gained N9.4 against the dollar in the official market.
The appreciation reduced the gap between the official and parallel market exchange rates to N44 per dollar from N24.6 recorded at the end of last week.
Currency traders attributed the movement in the parallel market to fluctuations in foreign exchange demand and supply conditions.
Analysts said the gains recorded in the official market reflected ongoing efforts by monetary authorities to stabilise the foreign exchange market and improve liquidity.
The CBN has continued to implement various measures aimed at enhancing transparency in the foreign exchange market and attracting inflows into the economy.
Market observers, however, noted that sustained stability in the exchange rate would depend on increased foreign exchange earnings, improved investor confidence and stronger external reserves.
The Naira has witnessed varying levels of volatility in recent months amid efforts by the monetary authorities to deepen reforms in the foreign exchange market.
