The Nigerian naira weakened further at the official foreign exchange market, closing at N1,373 against the United States dollar, its lowest level in four weeks, amid renewed global strength of the greenback.
Data published by the Central Bank of Nigeria (CBN) showed that the local currency depreciated from N1,369/$ recorded on Monday to N1,373/$ on Tuesday, June 23, marking the weakest official exchange rate since May 26, when it settled at N1,374/$, according to market data.
The latest performance underscores sustained pressure on the domestic currency in the second half of June after it had earlier appreciated to N1,356/$ in mid-June. The naira has now lost N17, representing a 1.25 per cent depreciation, within eight trading sessions, falling from N1,356/$ on June 15 to N1,373/$ on June 23.
Trading data indicated that the naira weakened steadily over the period, moving from N1,361.5/$ on June 17 to N1,365.5/$ on June 18, before closing at N1,371.5/$ on June 19 and slipping further to N1,373/$ on Tuesday.
Analysts attributed the latest decline to renewed strength in the U.S. dollar across global markets as investors increasingly anticipate that the U.S. Federal Reserve may maintain a hawkish monetary policy stance for longer. The U.S. Dollar Index rose to 101.39, its highest level since May 2025, increasing pressure on emerging market currencies, including the naira.
Financial economist at Kwik Securities Ltd, Muftau Yusuf, noted that stronger demand for dollar-denominated assets often exerts pressure on emerging and frontier market currencies.
According to him, global investors tend to shift towards dollar assets when U.S. yields remain elevated, leaving economies such as Nigeria vulnerable to exchange rate pressures.
The recent depreciation marks a reversal from earlier gains recorded by the naira in June, when the currency strengthened below the N1,360/$ threshold amid rising external reserves and improved foreign exchange liquidity.
