The exchange rate of the naira against the US dollar fell to N1,656.49 at the official Investor and Exporter (I&E) window, reflecting a 7.12% decline from N1,639.20 on September 13.
This depreciation occurred despite recent data indicating a slowdown in inflation, which dropped from 33.40% in July to 32.15% in August.
The naira’s recent fluctuations, consistently hovering around the N1,600 mark, highlight ongoing volatility in the currency market.
Market analysts suggest cautious optimism regarding a potential recovery, contingent on the US Federal Reserve’s decision to cut interest rates on September 18, 2024, which could weaken the dollar and bolster the naira’s position.
Analysts express cautious optimism that the naira may strengthen if the US Federal Reserve decides to cut interest rates on September 18, 2024, a move that could lead to a weakening of the dollar.
The naira closed at N1656.49 on September 17, 2024, down 7.12% from the previous closing rate of N1639.20 on September 13, 2024.
During the trading session, the naira hit a high of N1,665.00/$1 and a low of N1,565.00/$1 before closing at N1656.49.
On Tuesday, market turnover reached $100.39 million. In August, total market turnover was $3.25 billion, a decline from July’s $4.34 billion, reflecting a decrease of $1.08 billion.
In the parallel market, exchange rates for the naira fluctuated between N1,643.86 and N1,639.07, closely aligning with the official I&E window rate as the currency seeks to establish a balance against the dollar.
Nigeria’s headline inflation eased to 32.15% in August 2024, down from 33.40% in July
