The naira extended its gradual rise on Tuesday, signalling improving stability in Nigeria’s foreign exchange market.
It closed at ₦1,345/$ at the official window, improving from ₦1,355 on Monday.
Meanwhile, the Central Bank of Nigeria reported calm trading throughout the session.
Steady Naira Gains
The currency moved within a narrow band of ₦1,340 to ₦1,355 during the day.
In addition, traders settled the average exchange rate at ₦1,344.55 before the market closed.
By the end of trading, the naira reached its strongest level since February 18, 2026.
As a result, this performance shows the market is stabilising after weeks of fluctuations and uncertainty.
The naira has gained across recent sessions, and this points to a steady upward trend overall.
Consequently, reduced volatility has improved confidence among participants in the foreign exchange market.
Reserves Edge Lower
However, Nigeria’s external reserves declined slightly during the same period, showing ongoing adjustments in buffers.
The country’s reserves fell to $49.86 billion, down from $50.45 billion recorded in February.
This drop highlights pressure on the country’s ability to support the naira when needed.
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Despite this, the currency’s appreciation suggests improved foreign exchange supply conditions in the market.
Global Cues In Focus
Meanwhile, global currency markets showed mixed movements as investors reacted to tensions and policy expectations.
The dollar index stood at 99.56 after it declined for two consecutive trading sessions.
At the same time, the euro traded flat at $1.1538, following gains recorded in recent sessions.
The Japanese yen strengthened to 158.91/$, reflecting increased caution among global investors.
Similarly, the British pound remained steady at $1.3353, showing limited movement during the period.
These trends reflect uncertainty linked to tensions in the Middle East and economic policy decisions.
Looking ahead, the Federal Reserve will announce its policy decision on Wednesday this week.
In addition, the European Central Bank, Bank of England, and Bank of Japan will release decisions soon.
Markets expect most central banks to keep interest rates unchanged despite ongoing inflation concerns globally.
Therefore, investors are watching closely for signals on inflation trends and the broader economic outlook.
Earlier this year, the Federal Open Market Committee kept U.S. interest rates within its target range.
Meanwhile, the Central Bank of Nigeria reduced its Monetary Policy Rate to 26.5%.
Overall, the naira’s performance reflects gradual stability despite domestic pressures and global uncertainties.
