The Naira traded at 1,379.50 against the Dollar on Thursday, showing only a slight movement from its opening rate of 1,378.98, according to figures from the Nigerian Foreign Exchange Market (NFEM).
Market activity stayed moderate in early trading, with the currency reaching an intraday high of 1,380.00 before settling at its current level.
The Dollar remained under pressure after recent broad declines, as investors closely monitored whether the fragile ceasefire between the United States and Iran would hold.
Tensions persisted as Israel continued its separate conflict against Hezbollah in Lebanon, while Tehran accused both Israel and the U.S. of breaching the agreement, saying further peace talks would be “unreasonable.”
The Strait of Hormuz also remained closed to vessels without permits, with shipping operators declining to resume passage, pushing oil prices higher.
U.S. President Donald Trump said all American ships, aircraft and military personnel would remain stationed in and around Iran until full compliance with the deal is achieved.
The dollar index, which tracks the greenback against major currencies including the yen and euro, was unchanged at 99.07.
The euro slipped 0.01 per cent to $1.1661, while sterling edged up 0.01 per cent to $1.3393.
The yen surrendered part of its previous gains after the Middle East truce announcement, weakening 0.15 per cent to 158.81 per dollar.
Data from Tokyo Tanshi showed the overnight indexed swap market is pricing in a 55 per cent chance of an interest rate increase at the Bank of Japan’s meeting later this month.
Among global currencies, the U.S. dollar has gained the most from the conflict, largely because America is a net energy exporter and less vulnerable to oil supply shocks than import-dependent economies such as Japan and much of Europe.
The five-week war has shaken investor confidence and caused the largest recorded disruption to global oil and gas supplies.
Despite the ceasefire, Iran now holds greater influence over shipping access through the strategic strait than before the conflict.
Akihiko Yokoo, senior analyst at Mitsubishi UFJ Bank, said strong U.S. economic data could strengthen the dollar again.
The Australian dollar fell 0.06 per cent to $0.7039, while New Zealand’s kiwi rose 0.17 per cent to $0.5832.
In cryptocurrency markets, Bitcoin dropped 0.49 per cent to $71,030.07, while Ethereum declined 1.06 per cent to $2,186.50.