Pound falls against naira after UK Prime Minister resigns
By Aboki Forex —
The British pound weakened against the naira on Monday and dropped near its lowest level of the year against the US dollar. Political uncertainty in the United Kingdom shook investor confidence and weighed on sterling.
The pound's slide comes as the US dollar strengthens globally. The US Dollar Index, which measures the greenback against major currencies, stayed above 101 points after hitting a 13-month high.
Expectations that the US Federal Reserve may keep a tighter monetary policy for longer have driven the rally. Analysts say higher yields on government securities have pushed institutional investors to channel funds into Nigeria's financial markets. This has boosted liquidity and strengthened the naira against major international currencies.
Economic observers note that tighter monetary conditions, improved foreign exchange liquidity and stronger reserves have raised investor confidence in the naira despite ongoing global economic uncertainties.