The naira continued its upward movement in the official foreign exchange market on Tuesday, closing at N1345 to the dollar, its strongest level in about a month.
Data from the Central Bank of Nigeria shows the local currency improved from N1355 recorded a day earlier, extending a steady recovery trend seen in recent sessions.
The latest rate marks the naira’s best performance since mid-February, reflecting growing stability in the market.
Trading during the session was somewhat subdued; the currency traded within a narrow range and posted steady gains.
According to analysts, the lessened volatility suggests stronger foreign exchange supply conditions and rising confidence among market participants.
Although Nigeria’s external reserves have decreased somewhat, The News Chronicle understands that a rebound is on the way, since these reserves remain a major barrier to supporting the currency.
This scenario implies that short-term market stability is aided by recent policy changes and inflows.
Investors respond to geopolitical tensions and await policy signals from key central banks, including the United States Federal Reserve; currency movements across global markets have remained mixed.
Despite these external forces, the naira’s most recent performance shows renewed strength, with expectations that continuous liquidity and consistent policy direction could propel further near-term gains.
