The naira appreciated against the dollar at the foreign exchange market amid the Central Bank of Nigeria’s interest rate hike.

FMDQ data showed that the naira strengthened to N1659.44 on Tuesday from N1675.62 on Monday. This represents a N16.11 appreciation.

Similarly, at the black market, the naira gained N5 to close at N1750 against the dollar on Tuesday from N1755 exchanged the previous day.

The development comes as FX transaction turnover increased massively to $425.98 million on Tuesday from $108.79 million.

This showed that the FX market had responded positively to CBN’s interest rate hike on Tuesday to 27.50 per cent from 27.25 per cent to tackle the country’s inflation, which stood at 33.87 per cent in October.

On Monday, the National Bureau of Statistics Gross Domestic Product data showed that Nigeria’s economy grew by 3.46 per cent in the third quarter of 2024.