Naira slips to N1,353.50/$ as dollar strengthens on Fed rate hike bets
The naira weakened to N1,353.50 per dollar at the Nigerian Foreign Exchange Market (NFEM) on Tuesday, November 10, extending November losses as the US dollar gained globally on expectations of a Federal Reserve rate hike next month. The local currency lost N3.50 from Monday's N1,350 close, moving from N1,346.01 on November 2 through N1,350.45 (Nov 5) and N1,349 (Nov 6) to Tuesday's level.
Tuesday's trading range was N1,349.25 to N1,354, with a weighted average of N1,350.86. Interbank turnover reached $248.07 million across 144 deals, up from $210.38 million on November 9, though total NFEM turnover fell to $368.80 million from the previous session.
The depreciation coincides with Nigeria's gross foreign reserves growing by just $295.35 million in October 2026—the slowest monthly increase this year. However, net reserves hit a record $46 billion, up from $34.80 billion at end-2025, showing stronger reserve quality despite slower gross accumulation.
Internationally, the dollar index held near 102.22, its highest since October 28, after hot US inflation data and hawkish Fed comments boosted rate-hike expectations. The US 10-year Treasury yield jumped 13.8 basis points to 4.996%.
With the naira under pressure and US monetary policy tightening, importers and businesses needing dollars face rising costs. Will you hedge dollar exposure now, or wait for potential CBN intervention to stabilize the rate?