The Nigerian naira held steady against the US dollar at the start of the trading week, while international currency markets saw contained movement despite sharp swings in the Japanese yen.
The naira opened Monday trading at N1,375.98 per dollar on the official Nigerian Foreign Exchange Market (NFEM), a marginal improvement from the N1,375.65 recorded in early morning sessions. The currency briefly touched N1,376.00 before pulling back to its current level.
BrandSpur banking and finance news desk reports that in the parallel market (black market), Bureau De Change operators in Lagos and Abuja quoted the dollar at an average of N1,410 for buyers. This premium remains narrow by historical standards. The British pound traded at approximately N1,720, while the Canadian dollar fetched around N1,035 on the same market.
Analysts attribute the relative stability to the Central Bank of Nigeria (CBN) ‘s ongoing efforts to maintain liquidity in the official window. However, they warn that the naira remains sensitive to global oil prices and domestic monetary policy shifts, with mid-month demand cycles likely to test current levels in the days ahead.
Global Markets
On international markets, the US Dollar Index held a narrow range between 98.6 and 98.8, settling around 98.7. The session’s standout move came from the Japanese yen, which surged as much as 0.75% to 155.69 per dollar before trimming gains – triggering speculation of possible intervention by Japanese authorities. The yen’s volatility drew market attention away from broader dollar dynamics.
Elsewhere, the Indian rupee posted modest gains, edging from 94.91 to 94.86 per dollar on the back of mild dollar inflows.
Underpinning dollar stability were two key factors: persistent safe-haven demand linked to geopolitical risks, and elevated oil prices, with Brent Crude remaining above $100 per barrel. The high energy costs have reinforced expectations that the US Federal Reserve will maintain its restrictive monetary policy stance, lending the dollar underlying support even as uncertainty around the timing of future rate cuts keeps a ceiling on gains.
Analysts note the dollar is likely to remain range-bound until clearer signals emerge on inflation trends, rate policy, and the geopolitical outlook
