Naira appreciates to N1,394/$ as US dollar weakens

The Nigerian Naira continued to record gain against the US dollar during the midweek trading session with the currency dropping below N1,400. On Tuesday, the local currency hit monthly highs in the Nigerian Foreign Exchange Market (NFEM), where the exchange rate settled at about N1,400.66 per dollar. But the appreciation continued yesterday when the currency […]

The Nigerian Naira continued to record gain against the US dollar during the midweek trading session with the currency dropping below N1,400.

On Tuesday, the local currency hit monthly highs in the Nigerian Foreign Exchange Market (NFEM), where the exchange rate settled at about N1,400.66 per dollar.

But the appreciation continued yesterday when the currency settled 1,394, the highest gain in recent times.

The currency had already made significant gains in the previous session, ending at N1,401.2/$.

The parallel market, also known as the black market, responded more calmly amid the official foreign exchange market’s quick gains.

Analysts observe that the local currency premium decreased compared to naira volatility, even though the difference between the official and parallel rates still exists.

The naira has continued to appreciate in early 2026, keeping the momentum it established in 2025 (the naira enjoyed a decade high performance of 7%-9% against the USD in 2025).

“The dollar’s supremacy is cracking, and markets are building an escape route,” warns the CEO of one of the world’s largest independent financial advisory organisations according to a report.

The warning from Nigel Green of deVere Group comes as a sell-off in the US dollar has gained momentum after President Donald Trump says he isn’t concerned by the currency’s dramatic falls in recent days, as fears in currency markets intensify over the president’s erratic policymaking.

The dollar was down 1.3% against a basket of other major currencies, leaving it trading at the lowest level in four years.

 

 

 

The pound and euro climbed to their strongest levels against the dollar since mid-2021. The euro advanced 1.4% to $1.204, while sterling rose 1.2% to $1.384.

 

 

 

The yen extended its three-day rally on Wednesday as Tokyo traders responded to Donald Trump’s overnight remarks. It strengthened to ¥152.3 per dollar.

 

 

 

Nigel Green comments: “Currency markets are flashing red. The dollar sits at the centre of the global financial system, and moves of this scale signal a serious loss of confidence in America’s policy direction.”

 

 

 

He adds: “President Trump’s dismissal of the dollar’s fall alarms investors. FX markets trade credibility and discipline. When leaders and policymakers appear unconcerned about sharp declines, traders assume volatility will persist.”