By Atoyebi Nike
The naira weakened slightly against the US dollar in the official market on Monday, closing at ₦1,535.9/$ from ₦1,534.29/$, according to Central Bank of Nigeria (CBN) data. The local currency appreciated marginally against the pound sterling, closing at ₦2,060/£1, and gained ₦3.85 against the euro to trade at ₦1,782.75/€. The parallel market rate held steady at ₦1,560/$.
Market analysts expect the naira to benefit from sustained CBN foreign exchange inflows. Meanwhile, the dollar advanced globally ahead of US inflation data, rising 0.30% against the euro to 1.16 and 0.20% against the pound to $1.34. The US Dollar Index (DXY) was flat at 98.50.
Investors are pricing in a possible Federal Reserve interest rate cut in September, with a 90% probability projected and total reductions of up to 58 basis points expected by year-end. July’s US Consumer Price Index is forecast to rise 2.8% year-on-year, with core CPI seen at 3.0%.
In trade news, US President Donald Trump extended a 90-day pause on planned tariff increases on Chinese goods until November 10, part of a broader agreement to ease trade tensions. China confirmed it would reciprocate the suspension.
