Naira Settles Below N1500/$ For First Time Since March

Dollar To Naira Exchange Rate For Today 27 June 2025 Dollar To Naira Exchange Rate For Today 27 June 2025
The Nigerian naira strengthened to a five-month high of N1,497.5 per US dollar at the official foreign exchange market on Monday, buoyed by improved dollar liquidity and reduced demand pressure.

Gatekeepers Newreports that it is the first time since March 4 that the local currency has traded below the N1,500/$ mark. Analysts say the naira’s recent momentum mirrors the weakness of the US dollar in global currency markets.

Optimism from the CBN

Professor Murtala Sagagi, a member of the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC), expressed optimism that the naira could strengthen further to around N1,400/$ before the end of 2025.

“With the recent increase in daily crude oil production, new inflows of capital, and an improved balance of payments, it is likely that the naira will continue to appreciate, potentially reaching the projected N1,400 per dollar before the end of the year,” Sagagi said at the MPC’s July meeting, according to minutes released on September 12.

He added that reducing inflation and sustaining monetary policy measures would be crucial to maintaining the positive trajectory.

Dollar Weakness Globally

The naira’s rally coincides with a downturn in the US dollar. The US Dollar Index (DXY), which tracks the greenback against six major currencies, slipped to 97 points on Tuesday, its second straight day of losses.

The dollar weakened across the G10 currency basket, with the euro, Swiss franc, and Japanese yen leading gains. Analysts attribute the decline to improved global risk sentiment, expectations of a US Federal Reserve rate cut, and easing Sino-US tensions ahead of a scheduled meeting between Presidents Donald Trump and Xi Jinping on Friday.

Commodities Reaction

Gold extended its rally on Tuesday, climbing above $3,680 per ounce to set another record high. The precious metal gained nearly 1% in late trading Monday as investors sought safety amid dollar weakness.

Technical indicators suggest the dollar’s bearish trend may continue, with the DXY trading below its nine-day exponential moving average and its 14-day Relative Strength Index staying under 50. Immediate support is expected at 97 points, with further downside risks toward 96.5 and potentially 95.3 if the slide deepens.