The naira appreciated on Tuesday, gaining about ₦3 against the U.S. dollar at the official foreign exchange window as market liquidity improved and external reserves rose.
According to market data, the local currency closed at ₦1,433 per dollar, strengthening from the previous session amid increased dollar supply and reduced demand pressure.
The rebound in liquidity was driven by inflows from foreign portfolio investors seeking opportunities in the week’s Treasury bill auction, which boosted market confidence and supply balance.
Earlier, the spot rate had weakened to ₦1,436 per dollar following strong demand, but stabilized later in the day as inflows picked up. The intraday high reached ₦1,442.45 per dollar, while the lowest rate was ₦1,430.
Meanwhile, Nigeria’s gross external reserves rose to $43.259 billion from $43.197 billion recorded at the end of October, supported by stronger hydrocarbon revenue and improved foreign exchange inflows.
Market analysts attributed the development to renewed confidence in the naira, noting that sustained inflows and policy consistency could further strengthen the currency in coming sessions.
