Dollar Crashes to Lowest Level in 4 Years, Naira Hits New High
- The US dollar fell to its lowest level in four years after pushing investors toward gold
- Several global currencies including the naira surged on the back of the dollar’s weakness
- The naira strengthened slightly against the dollar, but weakened against the pound and euro
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.
Source: Getty Images
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.
Trump dismisses dollar fall
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.
Naira other currencies appreciates
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.
Source: Getty Images
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.
FX reserves hit 8-year high
Earlier, Legit.ng reported that Data from the CBN shows that gross foreign reserves climbed to $46.012 billion as of January 22, 2026, the highest level recorded in about eight years.
This marks an increase of roughly $510 million since the start of the year, up from $45.5005 billion on December 31, 2025.
The last time reserves were at this level was in August 2018, highlighting a notable turnaround in Nigeria’s external position.
Source: Legit.ng
