From Nairametrics: 2024-06-12 04:00:40

The naira strengthened against the dollar as the dollar index fell before the U.S. Fed’s interest rate decision. The CBN’s FX reserves and rising foreign reserves boosted the naira’s performance.

Nigeria received $925 million from Afreximbank for a crude oil-backed loan, increasing reserves. The U.S. Fed considers delaying interest rate cuts due to higher inflation, affecting foreign investment in Nigeria.

Market eyes U.S. inflation data as the Fed hints at delaying rate cuts. Global investors cautious as U.S. bond yields rise. Dollar index dips below 105 points.

U.S. inflation data to impact Fed’s decision on interest rates. CPI report and Fed’s policy meeting crucial for economic projections. Inflation remains above target at 3.4% annually.

Expectations for Fed’s “dot plot” to show fewer rate cuts. Forecasting two cuts but may decrease to one. Fed likely to adjust inflation and growth projections.

Post-meeting statement and Powell’s conference to provide further insight into Fed’s decision. Markets expect updated projections on inflation and GDP growth.



Read more at Nairametrics: Naira strengthens below N1,500/$ bandwidth amid U.S interest rate decision