Naira Climbs to N1,418 as U.S. Dollar Index Weakens
The Nigerian naira traded at N1,418 per dollar at the Nigerian Foreign Exchange Market (NAFEM) window on Monday in the absence of foreign payments pressures.
The local currency appreciated at the official window amidst a broader US dollar selloff versus major trading partners as geopolitical concerns stoke geoeconomic headwinds.
The broad US dollar index (DXY) remains under downward pressure, having slipped below the 98.00 handle. The index now sits at a technically pivotal zone – any further deterioration risks opening the door to an extended phase of USD softness, MUFG Research said in a note.
Data released by the Central Bank of Nigeria (CBN) showed that the naira closed at N1418.95 per dollar on Monday, supported by exporters and non-bank corporate inflows.
Foreign portfolio investment inflows continue to lead contributions into the forex inflows at the official window, with CBN playing an active role at the supply side.
Broadstreet appears to have different views about the naira outlook with a persistent fluctuation in global oil prices, and uncertainties over local production.
Geopolitical risk has increased after US President Trump ordered additional US naval assets toward the Middle East, reviving speculation of potential military action against Iran.
Latest data from the CBN revealed that Nigeria’s gross external reserves crossed $46 billion mark following successive inflows from oil and other related sources.
Analysts said growing oil production and relative price stability enhanced FX receipts reported last year, boosting the CBN’s external buffer for supporting the local currency.
According to the Nigerian Upstream Petroleum Regulatory Commission. Nigeria’s crude oil production, including condensates, averaged 1.64 mbpd in 2025, representing a 5.81% year-on-year increase from 1.55 mbpd in 2024.
In the parallel market, the spot rate dropped by 0.40% to ₦1,481/$. |Naira Climbs to N1,418 as U.S. Dollar Index Weakens First Holdco Loses 5.8% as Buying Sentiment Fades
