Dollar under pressure as inflation hits 4.2%, naira slips to N1,363/$
By Aboki Forex —
The US dollar faced renewed pressure on Wednesday, June 10, 2026, after soaring inflation and worsening global energy tensions rattled financial markets. The US Dollar Index slipped by 0.1% to 99.8 following the release of new inflation figures by the US Bureau of Labour Statistics. America's headline inflation rate rose to 4.2% in May, up from 3.8% in April. That is the highest level since April 2023.
Analysts blamed the surge on rising global energy costs tied to the escalating Middle East crisis. The conflict involving the United States, Israel and Iran has unsettled markets. Tehran responded to military attacks by tightening access around the Strait of Hormuz, a strategic route that carries nearly one-fifth of the world's energy supply. Oil prices have climbed, pushing up inflation across several economies, especially the United States.
President Donald Trump has assured Americans the price shock is temporary and expressed optimism about possible peace talks with Iran. But investors remain cautious as energy prices continue to rise ahead of the US midterm elections in November.
Naira slips despite improved investor confidence
Meanwhile, the Nigerian naira took a hit in both the official and parallel markets on Wednesday. Data from the Central Bank of Nigeria showed the local currency closed at N1,363 per dollar, down from N1,359.50 the previous day. Market participants said improved investor confidence and stronger foreign reserve levels helped support the naira despite global uncertainty.
Nigeria's external reserves climbed above the $50 billion mark, according to a report by MarketForces Africa. That reinforced confidence in the country's ability to defend the naira and meet external obligations. Economic experts believe the reserve growth could give the Central Bank of Nigeria stronger liquidity buffers as authorities work to stabilise the foreign exchange market and curb volatility.
“This is unprecedented in 17 years, but may be short-lived if the gains are not sustained. Most of the accretion comes from carbon sales,” Janet Ogochukwu, senior banker and economist, told Legit.ng during a call.
The development comes as emerging economies face renewed pressure from rising energy costs, inflation concerns and geopolitical tensions across global markets.
On Thursday, June 5, 2026, the naira weakened slightly against the dollar despite foreign reserves climbing close to their highest level in nearly two decades. The Central Bank of Nigeria reported the naira depreciated by 0.11% at the Nigeria Foreign Exchange Market (NFEM), closing at N1,358.75 per dollar compared to N1,357.27 a day earlier. That movement reflected ongoing demand pressure for foreign exchange as international payment obligations continued to outweigh FX inflows into the official market.