Naira and Rand Strengthen as Fed Cuts Rates, Shilling Steady

Here’s this week’s overview of the Nigerian Naira, Kenyan Shilling, and South African Rand:

Nigerian Naira

The Nigerian Naira strengthened by 0.4% against USD last week to trade at 1593 to the dollar on Friday. Reported central bank dollar selling and more reductions in food and overall inflation helped boost the Naira last week. Its gain was also fuelled by the Fed rate cut on Friday, causing a more ‘risk on’ sentiment in markets.

Kenyan Shilling

Kenyan Shilling remained flat against the dollar last week to trade at 128.5 on Friday. There were no significant data releases out of Kenya last week.

South African Rand

South African Rand closed 2% stronger against the Dollar last week to trade at 17.4 on Friday.

The Rand held onto its gains on Thursday and Friday following the South African Reserve Bank’s (SARB) decision to cut interest rates for the first time in over four years, after a larger interest rate cut by the U.S. Federal Reserve.

Data showed on Wednesday that South Africa’s annual inflation rate fell to 4.4% last month, its lowest since April 2021 and just below the mid-point of the central bank's 3% to 6% target range.