The Nigerian naira depreciated by N1.68/$ and 0.1% against the US dollar, settling at N1,535.9/$ compared to N1,534.29/$ at the previous market close.
This marginal decline reflects the ongoing dynamics in the foreign exchange market.
On the other hand, the naira gained 20 kobo against the Pound Sterling, closing at N2,060/£1, and appreciated by N3.85 against the Euro, trading at N1,782.75/€.
Despite the recent depreciation, currency traders and market analysts expect the naira to continue gaining value due to the Central Bank of Nigeria’s consistent foreign exchange inflow.
The black market exchange rate between the Nigerian and US currencies remained steady at N1,560/$1 on Monday.
In the global market, the US dollar showed strength, gaining 0.30% against the euro and 0.20% versus the British pound.
The US Dollar Index (DXY) is trading at a flat value of 98.50, losing value relative to a basket of six other currencies.
Market participants are closely watching the latest trade developments and awaiting new US inflation figures.
The market is reacting to the jump in job numbers and leading PMI indicators by betting that the Fed will cut interest rates.
Analysts anticipate a 90% likelihood of rate cuts during the September meeting, with a total of 58 basis points expected to be reduced by the year’s end.
“For the medium-term outlook, the market will focus on the [U.S] Federal Reserve’s [monetary] policy,” an analyst forecasted.
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