The naira traded at N1,379.50 against the United States dollar on Thursday, showing a slight movement from its opening rate of N1,378.98, according to figures from the Nigerian Foreign Exchange Market (NFEM).
Early trading activities remained moderate, with the local currency touching an intraday high of N1,380.00 per dollar before settling at its current level.
In the global market, the U.S. dollar continued to face pressure after recent losses, as investors remained cautious over the fragile ceasefire agreement between the United States and Iran.
Market sentiment remained tense as concerns grew over the sustainability of the truce. The ceasefire arrangement appeared increasingly uncertain amid reports that Israel continued military operations against Hezbollah in Lebanon, while Tehran accused both Israel and the U.S. of breaching the agreement, describing any continuation of peace talks as “unreasonable.”
Further concerns also stemmed from the continued closure of the Strait of Hormuz to vessels without permits, with shipping operators reportedly refusing to resume movement through the route. This development pushed global oil prices higher, given the strategic importance of the strait to international energy supply.
U.S. President Donald Trump stated that American ships, aircraft, and military personnel would remain stationed in and around Iran until full compliance with the terms of the deal is achieved.
Meanwhile, the dollar index, which tracks the strength of the greenback against major currencies including the euro and the yen, remained flat at 99.07.
The euro slipped marginally by 0.01 per cent to $1.1661, while the British pound gained 0.01 per cent to trade at $1.3393.
The Japanese yen also gave up part of its earlier gains recorded after the truce announcement, weakening by 0.15 per cent to 158.81 per dollar.
Data from the overnight indexed swap (OIS) market showed a 55 per cent probability of an interest rate hike at the Bank of Japan’s meeting later this month, reflecting expectations of possible monetary tightening.
Among global currencies, the U.S. dollar has remained one of the biggest beneficiaries of the conflict, largely because the United States is a net exporter of energy and is less vulnerable to oil price shocks compared to major importers such as Japan and several European economies.
The five-week conflict has significantly unsettled investors and has led to what analysts describe as the largest disruption to global oil and gas supplies on record.
Despite the ceasefire, the situation leaves Iran with stronger leverage over shipping activities through the Strait of Hormuz, a vital route for global crude exports.
Analysts noted that stronger-than-expected economic data from the United States could support a rebound in the dollar in the coming sessions.
Elsewhere, the Australian dollar weakened by 0.06 per cent to $0.7039, while New Zealand’s kiwi gained 0.17 per cent to $0.5832.
Naira Trades at N1,379.50/$ as Global Tensions Keep Dollar Under Pressure
