Naira tumbles above the N2,000 mark against British pound

The Nigerian naira faced downward pressure as it started Thursday’s session with a weakening trend against the British pound sterling, breaching the N2,000 mark in the black market.

This depreciation coincided with improved conditions in Nigeria’s foreign exchange reserves, which reached $35.05 billion, the highest under President Tinubu’s administration.

Meanwhile, the pound sterling surged to a four-month high against the US dollar following strong economic growth indicators from the UK. The Office for National Statistics reported a 0.4% expansion in the UK economy for May, driven by growth in the construction and production sectors, as well as sustained expansion in the services sector.

The British pound traded at $1.2859 against the US dollar in London, marking its highest level since March 8, 2024. Prime Minister Keir Starmer’s newly elected Labour government is expected to maintain a stable economic environment, focusing on pro-growth policies to stimulate private investment amidst challenging public finances.

Currency traders are watching for potential corrections in the pound’s rally, with support levels identified around $1.2731 and $1.2773. Maintaining these levels could sustain the pound’s upward momentum against the US dollar in the near term.