Naira Strengthens to N1,365 per Dollar as Global Dollar Weakness Drives Market Gains

The naira appreciated to ₦1,365 per dollar on Thursday, extending gains as the U.S. dollar weakened across global markets. The local currency improved from ₦1,369/$ recorded on Wednesday, according to data from the Central Bank of Nigeria (CBN), reflecting a mild but notable boost in market sentiment.

The rally in the naira aligns with a broader global decline in the U.S. dollar, which is heading for its biggest weekly drop since January. The shift has been driven by easing geopolitical tensions and growing optimism that a ceasefire in the Gulf region will hold, potentially restoring stability to global oil flows.

Market data shows the naira traded within a range of ₦1,351.5/$ to ₦1,365/$ during the session, with an average rate of ₦1,359.9/$. At the same time, Nigeria’s external reserves slipped slightly to $48.89 billion, continuing a gradual decline from $49.18 billion at the beginning of April.

Globally, investors have been unwinding safe-haven positions that previously strengthened the dollar during heightened Middle East tensions. With the ceasefire in place and diplomatic discussions ongoing between the United States and Iran, risk appetite has improved, pushing major currencies like the euro, pound, and yuan higher against the dollar.

Despite the recent gains, uncertainty still lingers in global energy and shipping routes, particularly through the Strait of Hormuz, where traffic remains below normal levels. The Central Bank of Nigeria, however, maintains an optimistic outlook, projecting stronger reserves in 2026 driven by oil revenues, bond inflows, and diaspora remittances.

source: nairametrics