Dollar Rebounds Across Nigeria, Global Markets

The U.S. dollar has rebounded strongly in global markets, marking its best week of the year and achieving its first monthly gain in 2025, driven by strong U.S. economic data and successful trade deals that raised tariffs without major retaliation. This resurgence has challenged investors who bet against the greenback and impacted European markets, with U.S. equities also benefiting amid enthusiasm for AI investments. In Nigeria, the naira has experienced depreciation against the dollar in both official and unofficial markets due to high demand, with traders noting a rise in the dollar exchange rate to around N1,550 in black market trades. Meanwhile, in Bangladesh, the shift to a more flexible, free-float exchange rate regime has led commercial banks to increase dollar transactions significantly, reversing earlier preferences for the euro. The Federal Reserve's ongoing policy meeting and upcoming U.S. economic data releases are closely watched as factors influencing the dollar's trajectory, even as Treasury borrowing plans and crude oil prices add complexity to the financial landscape. President Donald Trump's administration faces mixed implications from the sustained dollar gains, which contrast with its goals to depreciate the currency to improve trade competitiveness.