LONDON: Nigeria's naira rose against the dollar in the non-deliverable forwards (NDF) market on Wednesday, with the three-month contract quoting the currency as firm as 298, after hitting 324 in the previous session.

The naira is entering its third day as a floating currency after the central bank ditched a 16-month old peg. It has fallen about a third from its previous fixed rate around 197 per dollar .

NDFs, used by investors to lock in future exchange rates, indicated the naira at 290 in a month's time, converging towards the spot rate around 285 per dollar.

Three-month NDFs quoted the currency at 305, after earlier touching 298, but well off the previous day's levels .

Copyright Reuters, 2016