The naira maintained its stability, closing at N1,549.2616 per U.S. dollar, nearly unchanged from its prior rate of N1,549.0368, according to Central Bank of Nigeria (CBN) data. This equilibrium in the forex market reflects balanced demand and U.S. dollar supply, supported by the CBN’s ongoing interventions.
The naira so far has been trading within the N1,500 to N1,600 range, bolstered by sustained CBN forex interventions. Improving macroeconomic indicators and consistent economic reforms continue to enhance foreign investor confidence in Nigeria’s financial markets.
Oil prices, a critical factor for Nigeria’s economy, rebounded with Brent crude futures rising 1.8% to $68.36 per barrel and WTI climbing 1.9% to $65.62. The recovery follows a 13% weekly drop, driven by strong U.S. demand and cautious optimism about the Israel-Iran ceasefire’s impact on Middle East supply risks.
Gold prices held firm, with diminished safe-haven demand due to the ceasefire easing geopolitical tensions. However, lingering concerns about potential supply disruptions in the Middle East continue to influence market sentiment.
The U.S. dollar weakened, with the dollar index falling 0.5% to its lowest since April 2022, down over 8% this year. Speculation about U.S. interest rate cuts intensified following reports that President Donald Trump may appoint a new Federal Reserve chair, signaling a potential shift to a more dovish monetary policy.
Trump’s criticism of current Fed Chair Jerome Powell for maintaining steady rates has fueled expectations of policy changes. Additionally, fluctuating tariff discussions have raised questions about the dollar’s role in global trade, further pressuring its value.
