Naira Rises Against Dollar, Sterling, Euro in FX Market
The naira rallied against the currency majors—the United States dollar, British sterling, and euro—at the Nigerian foreign exchange market, details obtained from the Central Bank spot FX data revealed.
The local currency gained against the US dollar, closing at N1600.43 in the official market from the previous CBN spot FX quote of N1606. Spot FX data showed that the naira appreciated by N28 on the day against the euro to close at N1780 at the CBN window yesterday, from N1808.
Also, the local currency strengthened against the British pound to close at N2114.02, gaining N20 on the day from the previous quote of N2134.72. Foreign exchange liquidity improved in the interbank market, supported by inflows from foreign portfolio investors and export proceeds.
The naira gained modest ground, appreciating 36 bps to close at $/₦1,600.4396, with intraday trading confined to a narrow range of $/₦1,595 – $/₦1,605.05. Market sentiment benefited from the temporary U.S.-China tariff reduction agreement and a 3%+ rally in oil prices, which boosted interest in local assets.
External reserves continue to climb, standing above $38 billion amidst uncertainties in the global commodity market. Crude oil prices climbed over 1% on Monday after the U.S. and China agreed to cut tariffs, easing trade tensions between the world’s top oil consumers.
U.S. crude rose 93 cents to $61.95 per barrel, while Brent gained $1.05 to settle at $64.96. Earlier in the day, both had surged nearly 4%.
Meanwhile, gold prices dropped sharply as investor appetite for risk returned. Spot gold fell 3% to $3,225.28 an ounce, while U.S. gold futures declined 3.5% to $3,228.
The drop followed the announcement of the temporary trade deal, reducing demand for gold as a safe-haven asset. Crude price volatility is expected to persist, driven by OPEC+’s accelerated supply ramp-up and lingering U.S. policy unpredictability, AIICO Capital Limited said in a note. #Naira Rises Against Dollar, Sterling, Euro in FX Market Equities Investors Gain N1.04trn as Nigerian Stocks Boom
