By Atoyebi Nike
The naira appreciated marginally against the British pound on Tuesday, closing at N2,011.32/£ at the official market compared to N2,014.9/£ the previous day. Against the dollar, however, the local currency slipped to N1,493/$ following earlier gains.
The development came after the Central Bank of Nigeria (CBN) cut the Monetary Policy Rate (MPR) by 50 basis points to 27%, with Governor Olayemi Cardoso describing it as a “cautious attempt to ease monetary conditions” amid moderating inflation and stable exchange rates. The MPC also narrowed the asymmetric corridor around the benchmark rate to +250/-250 basis points.
In the UK, weak September PMI data weighed on the pound, with the composite index falling to 51.0 and manufacturing slipping further into contraction. S&P Global’s Chris Williamson warned of “weakening growth, slumping overseas trade, worsening business confidence, and further steep job losses.”
Meanwhile, the U.S. dollar regained ground, with the DXY index rising 0.1% to 97.4 as Fed Chair Jerome Powell signaled continued caution on interest rates, balancing inflation risks against labor market fragility.
