By Atoyebi Nike
The naira is gaining momentum in the foreign exchange market, inching toward the N1,440 support level as it rides a wave of global dollar weakness.
After plunging to N1,600 in April, the naira has steadily recovered, trading at around N1,488 in mid-September more than 7% stronger and comfortably below N1,500. Analysts say the currency could break further toward N1,440 before month’s end, underscoring its resilience.
Similar rallies are unfolding across Africa: Ghana’s cedi has gained over 13% since April, while South Africa’s rand is up more than 6%.
The shift reflects a broader global trend, with the U.S. dollar sliding to a four-year low against the euro on Tuesday. Investors are betting on a 25-basis-point Federal Reserve rate cut this week, while calls from President Donald Trump for deeper monetary easing have piled pressure on the currency.
So far this year, the dollar index has shed more than 10%, creating room for emerging-market currencies to strengthen.
