Naira Gains Against US Dollar, Weakens Versus Euro, British Pound
The naira strengthened against the US dollar across forex markets on Thursday, appreciating 0.16% to ₦1,370.15/$ in the official window and gaining 0.36% to ₦1,383/$ in the parallel market.
However, the local currency weakened against the European single currency, the British pound, the Japanese Yen, and the Swiss Franc, according to Apex Bank’s daily FX publication.
Trading data obtained from the currency platform showed that the local unit weakened against the Euro to N1567.7032 from N1564.7974 yesterday – reflecting a broader dollar index pullback today,
A review of market data showed that the naira dropped to N1831.4981 per British pound from N1821.0696 at the previous day’s close and fell against the Japanese yen to N8.5061 from N8.4493.
The local currency has regained momentum against the US dollar in particular after last week’s weak performance, recording three straight days of gains against the dominant US dollar.
Daily FX data released by the Central Bank of Nigeria (CBN) showed that the official rate closed at N1,370.1516 per dollar, down from N1,372.4072 the previous day.
Transactions were conducted between N1,360 and N1,373 per greenback during the trading session, reflecting the absence of significant pressures from international payments.
The CBN data showed that interbank FX turnover declined to $85.517 million across 94 deals closed by financial institutions trading on behalf of their clients from $90.303 million the previous day.
The last two trading sessions have seen a sharp decline in interbank FX turnover, down from an intra-week high of $269.898 million, according to data obtained from the CBN.
Despite a sharp slowdown in CBN FX intervention, the broader expectation remains that the naira will trade within a relatively stable range through the remainder of 2026.
Market reports showed that the price of Brent crude oil per barrel fell to the $70 range on Thursday as US and Iranian negotiations progressed.
WTI crude oil prices weakened during the European session on July 2, hitting a multi-month low of $67.45. Easing US-Iran tensions have significantly eroded the geopolitical risk premium that previously bolstered prices.
While diplomatic progress in Qatar suggests short-term stability, Iran’s insistence on controlling the Strait of Hormuz creates medium-term uncertainty. Technically, the daily chart shows a bearish death cross with prices falling below critical support levels.
With the momentum firmly downward, the trend remains susceptible to further declines toward $60, suggesting a tactical strategy of shorting on rallies until clear structural support emerges.
