Dollar Rises Against Pound, Euro After Trump's Victory, Naira Falls
- The United States dollar surged to new highs following Donald Trump’s election as US 47th president
- The report showed the pound, euro, and also the naira all fell against the US dollar on Wednesday
- The Nigerian naira has been struggling in the official and unofficial foreign exchange markets in recent months
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The US dollar rose to the strongest level against several other major currencies as Donald Trump won the race for the US presidency.
According to Bloomberg, the dollar claimed as much as 1.7%, the most in four years, hitting the highest since November 2023.
Source: Getty Images
The rise is due to sentiments that Trump will introduce various policies that will see investors get better returns on savings and investments they hold in dollars.
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BBC reports that on Wednesday, November 6, the British pound sank 1.41% against the US dollar to its lowest level since August.
Similarly, the euro dived 2.24% against the US dollar to its lowest level since June.
Naira against US dollar
It is the same story for the naira, as it suffered another decline against the dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX).
According to data from FMDQ Securities, the naira fell to N1,681.65 per dollar on Wednesday.
This represents a 0.61% loss for the naira compared to N1,671.32 per dollar, where it closed on Tuesday.
The development comes as the volume of dollar supplies, recorded in the NAFEM window, stood at $196.78 million.
In the black market, naira also fell by N5 against the US dollar to exchange at N1,735 on Wednesday compared to Tuesday's rate of N1,730.
Lagos Chamber predicts new exchange rate
Earlier, Legit.ng reported that the Lagos Chamber of Commerce and Industry (LCCI) predicted that the value of the Nigerian currency would improve against the US dollar.
Gabriel Idahosa, the President of LCCI, gave the prediction when he addressed journalists about the state of the economy in Lagos.
The chamber's president believes this rate is achievable if the CBN reviews the current free-floating exchange rate.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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