The naira strengthened against the U.S. dollar on Thursday, appreciating to N1,383/$ at the official foreign exchange market, even as the dollar remained firm globally.

According to Central Bank of Nigeria (CBN) data, the naira gained N6 from N1,389/$ recorded on Wednesday, reversing the previous day’s sharp decline.

The currency traded within a range of N1,376/$ to N1,390.50/$.

What the data is saying

CBN data showed the naira appreciated by 0.43% at the official market, with stronger liquidity in the interbank segment.

Other News

  • Interbank turnover increased to $195.37 million, compared with $125.59 million the previous day.
  • The weighted average exchange rate remained broadly stable at N1,380.11/$.

The rebound came despite continued strength in the U.S. dollar across global currency markets.

More Insights

Globally, the dollar remained supported after U.S. inflation data met market expectations, although traders scaled back expectations of further Federal Reserve interest rate hikes.

  • The Japanese yen traded around 161.82 per dollar, close to its weakest level in nearly 40 years, according to Reuters.
  • The U.S. Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, rose 4.1% year-on-year in May, matching market expectations.
  • Federal Reserve officials delivered mixed signals, with policymakers acknowledging some easing in inflation while maintaining that price pressures remain elevated.
  • Markets increased expectations that the Federal Reserve would leave interest rates unchanged at its next meeting, reducing expectations of near-term policy tightening.

The dollar index eased slightly after a three-day rally but remained on track for a second consecutive weekly gain, supported by resilient U.S. economic data and elevated geopolitical risks.

What you should know

Nairametrics earlier reported that the naira recorded its sharpest daily loss since April after closing at N1,389 per dollar at the official foreign exchange market on Wednesday.

  • Nigeria’s foreign reserves recently rose above $51 billion, reaching their highest level since 2009.
  • External reserves gained more than $1 billion in the first half of June 2026, supported by stronger foreign exchange inflows.
  • Nairametrics earlier reported that S&P Global revised its outlook for Nigeria, raising its 2026 inflation forecast while lowering growth expectations.
  • S&P Global increased Nigeria’s 2026 inflation forecast to 16.9%, up from 15.0%.
  • The agency reduced Nigeria’s 2026 GDP growth forecast by 30 basis points to 3.7%.
  • It also lowered the 2027 growth projection by 30 basis points to 3.5%.

According to the agency, stronger pass-through from higher oil prices to domestic energy costs is expected to keep inflation elevated and weigh on household consumption.

Despite the downward revision to growth forecasts, S&P Global expects Nigeria’s economy to remain supported by higher oil production and a relatively stable exchange rate outlook.