The Naira appreciated further against the US Dollar by 0.20 per cent or N30 Kobo to N1,586.19/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, May 29, from the N1,586.49/$1 it was traded on Thursday.
The domestic currency also improved its value against the Pound Sterling in the spot market yesterday by N4.28 to settle at N2,136.39/£1 compared with the N2,140.67/£1 it was exchanged a day earlier, and gained N2.54 against the Euro to quote at N1,797.11/€1, in contrast to the previous day’s value of N1,799.65/€1.
At the parallel market, the Nigerian Naira traded flat against the greenback during the trading session at N1,625/$1.
The stability of the local currency came from renewed optimism despite pressures, including reduced intervention by the Central Bank of Nigeria (CBN) in the market, seasonal demand, and external uncertainties in the global economy.
A look at the cryptocurrency market showed that investors lost appetite for digital assets as a result of fresh flare-up of US trade tensions after President Donald Trump accused China in a post on Truth Social of “violating” the tariff truce between the countries.
Meanwhile, Treasury Secretary Scott Bessent said talks had “stalled” with the Chinese representatives while China, in response, urged the US to “immediately correct its erroneous actions, cease discriminatory restrictions.”
The cool-off between US and China helped risk assets rally in May, providing a tailwind for crypto like Bitcoin (BTC) to clinch a new record high.
Now, the re-escalation threatens to unwind some of those gains, with Dogecoin (DOGE) losing 6.7 per cent to sell at $0.1900, and Litecoin (LTC) declining by 5.7 per cent to $85.13.
Further, Solana (SOL) lost 4.8 per cent to sell at $155.28, Cardano (ADA) slumped 4.3 per cent to $0.6696, Ethereum (ETH) went down by 3.4 per cent to $2,522.72, Binance Coin (BNB) slid by 2.3 per cent to $654.84, Ripple (XRP) depreciated by 1.9 per cent to $2.13, and Bitcoin (BTC) fell by 1.7 per cent to $103,903.08, while the US Dollar Tether (USDT) and US Dollar Coin (USDC) traded flat at $1.00 each.