The naira recorded a modest improvement against the US dollar on Tuesday, October 6, 2026, as the local currency continued to trade within a relatively narrow range in Nigeria’s official foreign exchange market.

The naira closed at about N1,331.50 per dollar on the Nigerian Foreign Exchange Market (NFEM), compared with N1,332.90/$ recorded on October 5, according to market data. The weighted-average rate for the session was around N1,330.87/$, highlighting the relatively limited movement in the currency during the day.

The latest movement comes after the naira had weakened slightly against the dollar at the beginning of the month. Despite the daily fluctuations, the currency has remained broadly around the N1,330/$ level in recent trading sessions.

Trading activity in the foreign exchange market also remained significant. Reports showed interbank FX turnover of about $313.55 million during Tuesday’s session, although figures on the total number of transactions differed across reports as market data was still being updated.

The naira’s performance against other major currencies was less favourable.

Against the British pound, the currency weakened, while it also recorded a decline against the euro based on the official rates reported for the session. The movements reflect the fact that the naira’s performance can vary significantly depending on the currency being measured.

In the parallel market, rates also remained relatively close to the official market, although street rates can vary depending on location, dealer and transaction size. Reports on Tuesday placed the parallel-market dollar rate around the mid-N1,300 range.

Nigeria’s external reserves have also continued to show strength in recent weeks. Data reported from the Central Bank of Nigeria indicated that gross external reserves had climbed to around $54.9 billion, reinforcing the country’s improving foreign-exchange buffer.

The reserve position is important for the foreign exchange market because stronger reserves provide the Central Bank with a larger pool of foreign currency to manage external obligations and support market liquidity.

The latest exchange-rate movement therefore points to relative stability rather than a major shift in the value of the naira. Businesses, investors and consumers will continue to watch developments in foreign exchange liquidity, crude oil earnings, capital flows and demand for dollars as factors that could influence the currency in the coming days.

For now, the naira remains around the N1,330/$ region in the official market, with daily movements relatively contained despite changes in trading activity.

Reporting by TalkNaijaMedia