Naira Falls to N1045/$ Amid Federal Reserve’s Cautious Stance

As the Federal Reserve maintains a cautious stance amidst uncertainties, the naira faces a significant decline in the parallel market. The continuous mismatch between demand and supply has pushed the naira to N1045/$ against the dollar, marking a 40% loss since mid-June.

The dollar’s index hovers near a two-week low on Thursday, with eyes on important US inflation data. The Fed’s apprehension is further underlined by mixed reports on producer prices and easing inflationary pressures, all leading to speculations about the future of US monetary policy.

READ ALSO: Naira-Dollar Exchange Rate Hits N1,040 In Parallel Market As Scarcity Grows

While uncertainties in the economy, oil prices, and financial markets dominate discussions, the future path of the dollar remains unpredictable. With bond yields responding inversely to price and the dollar’s resilience in the face of credit rating downgrades, the US economic recovery remains in focus.

Emmanuel Ochayi

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Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

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