Market News

By SAMUEL MOBOLAJI

The naira demonstrated resilience in the foreign exchange market, rising by 0.24 per cent to close at N1,380.58 per dollar, reflecting growing confidence in the local currency amid robust FX liquidity.

The appreciation came as foreign payments slowed and dollar supply in the official market remained ample, supporting favourable trading conditions.

Bradstreet FX traders noted that while informal market demand stabilised, the naira maintained strength against the greenback throughout the week.

The exchange rate hovered around N1,400 per dollar on Friday, improving from N1,405 earlier, signalling sustained formal-sector demand despite limited movement in the parallel market.

Analysts attributed the currency’s stability to strong inflows from exporters, non-bank corporates, and other hard currency sources, coupled with a reduced intervention by the Central Bank of Nigeria (CBN).

Nigeria’s gross external reserves closed the week at $49.48 billion, down slightly by 0.61 per cent from $49.79 billion the previous week, indicating adequate buffer levels.

In the commodities market, crude oil prices softened, with Brent crude around $100 per barrel and US West Texas Intermediate (WTI) near $93, following easing fears of immediate supply disruptions after diplomatic talks between the U.S. and Iran. Precious metals recorded mixed performance as renewed safe-haven demand lifted some, while gold, platinum, and lead retreated amid profit-taking and subdued industrial activity.

The trends highlight strengthening confidence in the naira, supported by sustained portfolio inflows, controlled intervention, and resilient external reserves, suggesting potential for further appreciation in the near term.