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The naira strengthened to close at N1,363.5 per dollar at the official foreign exchange market on Friday, rebounding after a sharp depreciation at the start of the week.

Data tracked by Nairametrics on the Central Bank of Nigeria’s (CBN) website shows that the currency experienced significant volatility during the week, weakening sharply on Monday before gradually recovering over subsequent trading sessions.

The turnaround highlights improving supply conditions in the foreign exchange market after earlier pressure triggered by heightened demand for dollars.

The naira opened the week on a weak footing before staging a steady recovery toward the end of the trading week.

The currency extended the recovery on Friday, closing at N1,363.5 per dollar, representing a rebound of more than N60 within four trading days after the early-week slide.

The movement follows a relatively stable trading pattern recorded in the preceding week when the naira traded within a narrower band at the official market.

The early-week depreciation in the current trading cycle, therefore, marked a notable break from the relative stability seen in the previous week.

The Central Bank of Nigeria says the country’s improving external reserve position could help cushion the naira against prolonged pressure.