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The naira depreciated to N1,391/$ on Wednesday as the U.S. dollar strengthened against major global currencies.

The decline comes amid rising global inflation concerns and persistent geopolitical uncertainty linked to tensions involving Iran.

Data obtained from the Central Bank of Nigeria (CBN) showed that the local currency weakened from N1,383.5/$ recorded on Tuesday.

The movement reflects broader pressures in the foreign exchange market as investors react to global economic signals.

The strengthening of the dollar, driven by inflation expectations and risk sentiment, has continued to weigh on emerging market currencies, including the naira.

CBN data shows that the naira traded within a defined range during Wednesday’s session, reflecting ongoing volatility in the foreign exchange market.

The figures also indicate a decline in market activity compared to the previous day.

The data also shows a slight dip in Nigeria’s external reserves, signaling continued pressure on the country’s foreign exchange buffers.

The naira has faced sustained pressure in recent months due to a combination of global and domestic factors, including dollar strength, capital flow dynamics, and monetary policy tightening in advanced economies.

Globally, the U.S. dollar gained strength on Wednesday, with the dollar index rising by 0.44% to 99.62, as traders assessed inflation trends and geopolitical developments. The euro fell by 0.39% to $1.1562, while the British pound declined by 0.37% to $1.3362.

Rising U.S. import prices, which recorded their biggest increase in nearly four years in February, have reinforced expectations of sustained inflation, increasing the likelihood of tighter monetary policy in the United States.

Geopolitical tensions, particularly around Iran, continue to influence global market sentiment and currency movements.

Other global currencies also weakened against the dollar, with the Japanese yen falling to 159.46 per dollar and the Australian dollar declining by 0.63% to $0.6949.

Nigeria’s external reserves declined slightly to $49.57 billion on March 24, 2026, from $49.6 billion recorded on March 23, 2026.

Earlier, Nairametrics reported that the Naira weakened slightly to N1,383.5/$ on Tuesday, compared to N1,383/$ recorded on Monday, amid declining external reserves and cautious sentiment in global currency markets.