The naira extended its upward momentum, appreciating to N1466/$ at the official window, according to data from the Central Bank of Nigeria (CBN).
The naira traded within an intraday range of N1472/$ to N1463/$, closing at N1464/$.
Traders noted that the 0.27% appreciation resulted from “healthy FX supply from exporters and international oil companies as well as hot money from foreign portfolio investors.”
The improved liquidity has helped ease pressure on the market and stabilized sentiment after weeks of volatility.
In the parallel market, Bureau de Change (BDC) operators reported mixed trading conditions, with buying rates between N1485 and N1495 and selling mostly around N1500 per dollar.
The narrowing gap between official and parallel market rates signals improving convergence, which analysts say could further strengthen the naira if sustained inflows continue.
Nigeria’s gross external reserves climbed to $42.574 billion, up from $42.353 billion at the end of last month.
The rise, supported by inflows from multiple sources, reinforces the CBN’s ability to defend the currency amid uncertainty in global markets.
Meanwhile, global oil prices slipped after Israel and Hamas agreed to a ceasefire, easing geopolitical tensions that had propped up crude in recent weeks. Brent crude fell $1.31 (1.71%) to $65.12 per barrel, while U.S. WTI dropped $1.12 (1.79%) to $61.43, suggesting further downside as risk premiums fade.
Gold prices also corrected after breaching the $4,000 per ounce mark for the first time. Spot gold declined 0.87% to $3,976.69/oz, and U.S. gold futures dipped 0.96% to $3,991.57/oz, as investors booked profits and the dollar regained some strength following the ceasefire news.
At 10:52 AM WAT on October 10, 2025, the U.S. Dollar Index (DXY) traded around 99.29, down between 0.11% and 0.27% from its opening value.
Despite posting a weekly gain of 1.77% and a monthly increase of 1.78%, the index faces “mild downward pressure” as markets anticipate Federal Reserve rate cuts in Q4 2025, weighing on the dollar’s outlook.
With combination of softer dollar sentiment and improved FX inflows may continue to support the naira’s recovery trajectory in the short term.