The Nigerian naira opened strongly at the Nigerian Foreign Exchange Market (NFEM) on Wednesday, posting gains against major foreign currencies, including the United States dollar, British pound, and euro, amid sustained market liquidity.
New Exchange Rates Released by CBN
Fresh exchange rate data released by the Central Bank of Nigeria (CBN) showed that the local currency traded at N1,360.5519 against the US dollar, N1,573.6143 against the euro, and N1,823.0035 against the British pound. The naira gains against major currencies come amid improved liquidity, reinforcing growing confidence in the country's foreign exchange market.
Naira Extends Rally at the Official Market
At the official market, the naira continued its upward movement as demand pressure remained relatively low and FX liquidity improved. According to the CBN's daily FX report, the spot exchange rate closed at N1,360.5519 per dollar, stronger than the previous day's closing rate of N1,362.8397. Market analysts stated that the current stability in the forex market is being supported by healthy inflows from exporters, foreign portfolio investors, and non-bank corporates.
Analysts at Broadstreet, speaking with MarketForces Africa, noted that the market has remained relatively liquid in recent weeks and is expected to sustain the naira's positive momentum through the week. Trading figures released on Tuesday also showed that transactions were completed within the N1,359 to N1,363 per dollar range, a sign that the FX market is experiencing improved liquidity and reduced volatility.
Improved FX Liquidity Boosts Confidence
The naira's performance in June has been largely driven by stronger foreign exchange inflows and tighter market management by monetary authorities. Financial market observers believe sustained liquidity at the interbank market could further support exchange rate stability in the short term. The recent gains may also ease pressure on importers and businesses that rely heavily on foreign exchange for transactions.
Although the naira remains under long-term pressure due to external economic factors and global market uncertainties, analysts say improved investor confidence and stable FX supply are helping the currency recover gradually.
Rising Oil Prices Stir Global Market Concerns
Meanwhile, global oil prices climbed during early Asian trading on Wednesday after the United States carried out military strikes on Iranian assets near the Strait of Hormuz. Brent crude rose by 1.03 percent to $92.39 per barrel, while West Texas Intermediate gained 0.91 percent to trade at $89.00 per barrel. According to reports, the US described the strikes as self-defence actions following the alleged downing of a US Army Apache helicopter near the region. Iran, however, denied responsibility, insisting the helicopter incident was accidental and accusing Washington of using it as justification for military action.
The renewed tensions have unsettled global markets, with investors closely monitoring developments in the Middle East over fears of a broader conflict that could disrupt global oil supply. Oil prices had already surged earlier in the week following renewed hostilities between Iran and Israel, before tensions briefly eased on Tuesday under diplomatic pressure from the United States and regional allies, a report by MarketForces Africa said. With crude oil prices remaining highly sensitive to geopolitical developments, traders are expected to remain cautious in the coming days.
Naira Surges to a Three-Week High
Legit.ng earlier reported that the Nigerian naira recorded its strongest performance in nearly a month on Wednesday, June 3, 2026, appreciating to N1,357.26 per dollar in the official foreign exchange market as improved liquidity conditions and rising external reserves continued to support the local currency. Data released by the Central Bank of Nigeria (CBN) showed that the naira gained N3.79 against the US dollar, closing at N1,357.26 at the Nigerian Foreign Exchange Market (NFEM), compared with N1,361.05 recorded on Tuesday. The latest exchange rate marks the naira's highest level in about three weeks, with the currency last trading around the same range on May 6, 2026, when it closed at N1,357.34 per dollar.
