The naira strengthened against the U.S. dollar on Tuesday, trading at N1484 in the Nigerian foreign exchange market after testing intraday highs of N1479 per dollar, according to updates from the Central Bank of Nigeria (CBN).
This performance marks a significant improvement, with analysts pointing to rising foreign reserves and broader weakness in the U.S. dollar index as supportive factors. Nigeria’s external reserves climbed to $41.844 billion, up from $41.698 billion on Friday, reflecting successive foreign inflows.
Market observers say the currency’s appreciation is improving investor sentiment and fueling bullish forecasts for the FX market. They also noted that declining headline inflation has been supported by the naira’s recent stability.
Global factors also played a role, with crude oil prices surging amid renewed supply concerns linked to the ongoing Russia-Ukraine conflict. Light crude futures broke past the 200-day moving average at $63.32, sparking strong buying momentum that lifted prices above $64.
West Texas Intermediate (WTI) crude is now testing the $64.25 resistance level. Analysts believe a breakout could trigger further gains, setting the stage for a push toward $65.41 and possibly $66.03.
