US dollar hits 12-month high as naira slides to N1,363
By Aboki Forex —
The United States dollar surged to its highest level in 12 months on Thursday, piling fresh pressure on the Nigerian naira. The naira slipped in the official foreign exchange market after enjoying a brief two-day rally.
The greenback strengthened sharply after the US Federal Reserve left interest rates unchanged but signalled a tougher stance on inflation. That raised expectations that borrowing costs could increase later this year.
The development triggered renewed investor demand for US assets and boosted the dollar against major global currencies.
At the official market, the naira depreciated by N4 to close at N1,363 per dollar on Thursday, June 18, 2026, according to data from the Central Bank of Nigeria (CBN). The decline reversed the gains recorded over the previous two trading sessions and reignited concerns about the local currency's stability.
The Federal Reserve maintained interest rates within the 3.50 per cent to 3.75 per cent range but adopted a more hawkish outlook under its new chairman, Kevin Warsh. Updated projections released by the US central bank showed that nearly half of policymakers now expect at least one rate increase this year as inflationary pressures remain persistent.
Markets responded swiftly, with Fed funds futures fully pricing in a rate hike by October. Stronger-than-expected US retail sales figures also reinforced the view that the world's largest economy remains resilient, encouraging investors to shift more funds into dollar-denominated assets.
The result was a broad-based rally for the greenback. The US Dollar Index, which measures the currency against a basket of major rivals, climbed 0.36 per cent to 100.71, its highest level since May 2025. The index had already recorded its biggest single-day gain in more than three months during the previous trading session.
The hawkish update from the Federal Reserve raises the risk of a significant bullish breakout for the US dollar.