The Nigerian Naira strengthened against the US dollar during Friday’s trading session, appreciating to N1570.14/$ from N1586.1/$ on Thursday.
This represents a gain of N16, partially due to the Central Bank of Nigeria’s efforts to stabilize the naira and a weaker dollar index following Federal Reserve Chair Jerome Powell’s remarks about a possible interest rate cut in September.
However, the naira weakened against the British pound, which reached its highest level in over two years.
On the black market, the naira’s value also increased slightly from N1620/$ to N1615/$.
Despite these fluctuations, Nigerian businesses remain concerned about the naira’s short-term prospects, anticipating further depreciation before a potential recovery in late 2024 or early 2025.
Globally, the US dollar fell against major currencies, including the euro and yen, after Powell’s comments on inflation and the labor market.
The pound rose to a two-year high against the dollar, driven by positive signals from the UK economy.