The Nigerian naira hovered near ₦1,400 to the U.S. dollar on Tuesday, signalling cautious optimism.
Meanwhile, traders monitored market activity closely, noting steady liquidity despite extreme swings throughout 2024–2025.
₦1,400 Naira Holds Steady
The Central Bank of Nigeria applied its “willing-buyer, willing-seller” policy, maintaining stability and preventing sudden shocks.
Consequently, businesses welcomed predictability, allowing better planning and reducing risk from currency volatility across sectors.
Middle East Tensions Impact Markets
At the same time, geopolitical tensions in the Middle East unsettled global markets and investor sentiment sharply.
Projectiles struck several vessels off Iran, including one in the Strait of Hormuz, causing onboard fires.
Read Also: Naira Drops To ₦1,425, Hitting Six-Week Low
Authorities directed the crew of the damaged ship to evacuate safely while they launched emergency response.
Additionally, attackers hit vessels near Dubai and the UAE coast, halting shipping through this critical corridor.
The UKMTO warned vessels to remain vigilant and report suspicious activity while investigators probe the strikes.
Dollar And Oil React
Meanwhile, the U.S. dollar recovered after losing ground, supported by optimism about a potential Middle East ceasefire.
Earlier, U.S.-Israeli airstrikes on Iran drove volatility, pushing oil prices toward near 2023 highs.
President Trump suggested the conflict might resolve sooner than expected, calming investors and easing market fears.
Subsequently, Iranian statements reassured markets, reducing dollar purchases and triggering a nearly 15% oil price drop.
Consequently, safe-haven demand returned, supporting renewed dollar buying amid lingering geopolitical uncertainty and global risk.
Economists cautioned that oil price surges may take time to influence inflation and consumer price reports.
Meanwhile, U.S. year-on-year inflation fell to 2.4%, the lowest since May 2025, hinting at potential rate cuts.
The Federal Reserve remains silent before its March 18 meeting, leaving markets guessing policy responses to tensions.
Finally, central banks face a delicate choice: act aggressively or risk entrenched inflation disrupting economic stability worldwide.
