The naira lost steam at the parallel market on Monday, sliding to 555 per dollar.
The local currency had crashed to 540/dollar on Friday, after trading at 535/dollar on Thursday.
After tumbling to 575/dollar recently, the local currency began a gradual uptick in recent weeks peaking at 530/dollar last week.
Operators in the parallel market, who spoke to our correspondent on Monday, said the local currency was bought and sold at 550/dollar and 555/dollar respectively.
An operator in the black market attributed the fall to an increase in demand for the greenback.
At the Central Bank of Nigeria’s Investor & Exporter Window, the naira fell by 0.16 per cent to close at 415.07/dollar after reaching a new high of N445.75.
According to local currency traders, lack of adequate liquidity in the retail end of the market is responsible for the naira crash.
“It is a sign we need to meet the demand for dollar in the market, this constitutes a major conflict in activities in the market,” a local operator who chose to speak on condition of anonymity, said.