Keep up with the latest news and be part of our weekly giveaways and airtime sharing; follow our WhatsApp channel for more updates. Click to Follow us

The naira continues to firm up in the foreign exchange market, edging closer to a key monthly support level of ₦1,440 as it rides on the wave of a weakening U.S. dollar.

Earlier in the year, the naira experienced a bearish run, plunging to ₦1,600 in April after consecutive pressures that began in February. However, it has since staged a sustained rebound. By mid-September, the currency was trading around ₦1,488 — more than 7 percent stronger and safely below the ₦1,500 mark.

Analysts believe the recovery may continue into the final days of September. “The naira could break toward the ₦1,440 support zone, reflecting its resilience and ability to benefit from dollar weakness,” they said.

This trend mirrors developments in other African economies. Ghana’s cedi has strengthened by over 13 percent since April, while South Africa’s rand has gained more than 6 percent, both leveraging the dollar’s slump.

Globally, the dollar’s troubles are deepening. On Tuesday, it fell to a four-year low against the euro, underscoring the extent of its decline. “The dollar fell sharply across the board on Tuesday, sliding to a four-year low against the euro as investors increased bets on a Federal Reserve rate cut this week,” analysts observed.

The euro climbed 0.9 percent to $1.1867 — its highest level since September 2021. “It is heading for another positive close this month against the dollar, putting it on track to finish in the green every month so far in 2025 except July,” traders noted.

After stabilizing briefly in July following steep losses earlier in the year, the dollar has once again come under intense selling pressure. Market watchers link this to expectations of another rate cut by the U.S. Federal Reserve and renewed political pressure. “Expectations of another Fed rate cut, along with fresh calls from President Donald Trump for more aggressive monetary easing, have weighed heavily on the currency,” they explained.

Markets are widely anticipating a 25-basis-point rate cut on Wednesday, spurred by deteriorating labor market figures. So far in 2025, the dollar index has dropped more than 10 percent, offering currencies pegged or tied to the greenback the space to appreciate.

Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it. 
Drop your comment in the section below, and don’t forget to share the post