The US dollar has fallen to its lowest level in four years, opening door for naira and other global currencies to appreciate.
The fall of the dollar has prompted investors to shift funds into traditional safe havens such as gold, euro and the Swiss franc.
The Guardian UK reports that the dollar dropped 1.3% against a basket of major currencies on Tuesday, marking its fourth consecutive day of losses, before slipping a further 0.2% on Wednesday morning to its weakest level since February 2022.
The latest fall, means dollar has now fallen about 10% over the past year.
President Donald Trump dismissed worries over the currency’s slide.
Speaking during a visit to Iowa, Trump played down concerns about the weakening currency.
He said: “No, I think it’s great,” he said when asked about the dollar’s fall, adding that strong business activity showed the currency was “doing great.”
Tuesday’s decline was its steepest one-day drop since April last year, when Trump announced sweeping tariff plans that triggered a global market sell-off.
Steve Sosnick, market strategist at Interactive Brokers explained:
“A weaker dollar is a two-sided coin.” He noted that while it benefits multinational companies with foreign-currency revenues, it also raises the cost of imports and could fuel inflationary pressures.
The dollar’s weakness has lifted rival currencies to multi-year highs.
The Swiss franc rose to its strongest level against the dollar in more than a decade, gaining about 3% so far this year after a 14% rise in 2025.
The euro also surged to $1.20, climbing roughly 2% in the past week, its biggest weekly gain since April last year. The single currency rose 13% in 2025, its best annual performance since 2017.
Gold continued its rally, hitting fresh record highs above $5,200 an ounce. The precious metal has jumped nearly 90% since Trump’s second inauguration just over a year ago, as investors seek protection from political and economic uncertainty.
In Nigeria, the naira strengthened against the dollar in the official market, reflecting the global shift in currency sentiment.
The Nigerian currency appreciated to N1,400.28 per dollar at the Nigerian Foreign Exchange Market (NAFEM) on Wednesday, January 28, gaining 74 kobo or 0.05%, according to Central Bank of Nigeria data.
It had closed at N1,401.22/$1 in the previous session.
However, the naira weakened against other major currencies. It depreciated by N4.15 against the pound sterling to close at N1,929.99/£1, and lost N3.31 against the euro to settle at N1,675.53/€1 in the official market.
At the parallel market, the naira remained stable at N1,480/$1, while it closed flat at N1,426/$1 at the GTBank forex desk.
