US dollar hits four-year low, prompting naira and other currencies to rise while gold surges, reflecting global investor shift amid economic uncertainty

The US dollar has fallen to its lowest level in four years, boosting the naira and several other global currencies as investors move into safe-haven assets such as gold, the euro, and the Swiss franc.

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According to The Guardian UK, the dollar dropped 1.3% against a basket of major currencies on Tuesday, extending its decline to a fourth consecutive day, before slipping a further 0.2% on Wednesday, its weakest level since February 2022.

Over the past year, the dollar has lost around 10% of its value.

President Donald Trump dismissed concerns over the slide, describing the situation as “great” and citing strong business activity as a sign of economic resilience.

Market strategist Steve Sosnick of Interactive Brokers explained that a weaker dollar is a double-edged sword.

While it benefits multinational firms earning in foreign currencies, it raises import costs and could stoke inflationary pressures.

The weakening dollar lifted rival currencies to multi-year highs. The Swiss franc surged to its strongest level against the dollar in over a decade, gaining around 3% this year following a 14% rise in 2025.

The euro climbed to $1.20, marking its largest weekly gain since April last year and a 13% increase for 2025 — its best annual performance since 2017.

Gold also continued its rally, hitting record highs above $5,200 an ounce, nearly 90% higher since Trump’s second inauguration as investors sought protection from political and economic uncertainty.

In Nigeria, the naira strengthened against the dollar in the official market, rising to N1,400.28/$1 on Wednesday, up 74 kobo from N1,401.22/$1 in the previous session, according to Central Bank of Nigeria (CBN) data.

However, the naira fell against the pound and euro, closing at N1,929.99/£1 and N1,675.53/€1, respectively.

At the parallel market, the naira remained stable at N1,480/$1, while GTBank forex desks quoted it at N1,426/$1.

Data from the CBN also show that Nigeria’s gross foreign reserves reached $46.012 billion as of January 22, 2026, the highest in about eight years and up roughly $510 million since the start of the year.

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The last time reserves were at this level was August 2018, highlighting a significant improvement in the country’s external position.