Dollar Crashes as Naira Trades at New Rates, Nigeria’s Reserves Climb Above $50bn
- The US dollar faces renewed pressure due to soaring inflation and global energy tensions
- Nigeria's naira slips despite improved investor confidence amid global uncertainty
- Experts warn reserve growth may be short-lived without sustained gains in the forex market
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The US dollar came under renewed pressure on Wednesday, June 10, 2026, as soaring inflation and worsening global energy tensions rattled financial markets, triggering fresh movements in foreign exchange trading worldwide.
The US Dollar Index, which measures the greenback against six major global currencies, slipped by 0.1% to 99.8 after new inflation figures showed prices in the United States climbing sharply.
Source: Getty Images
Official data released by the US Bureau of Labour Statistics revealed that America’s headline inflation rate rose to 4.2% in May from 3.8% in April, marking the highest level recorded since April 2023.
Analysts attributed the inflation surge largely to rising global energy costs linked to the escalating Middle East crisis.
Global energy crisis fuels market anxiety
The ongoing conflict involving the United States, Israel and Iran has continued to unsettle global markets after Tehran responded to military attacks by tightening access around the Strait of Hormuz, a strategic oil and gas shipping route responsible for transporting nearly one-fifth of the world’s energy supply.
The disruption has pushed oil prices higher, increasing inflationary pressure across several economies, especially in the United States.
Although US President Donald Trump has repeatedly assured Americans that the price shock would be temporary and expressed optimism over possible peace negotiations with Iran, investors remain cautious as energy prices continue to rise ahead of the US midterm elections scheduled for November.
Naira slides after days of rally
Meanwhile, the Nigerian currency, the naira, experienced a setback in the official and parallel markets on Wednesday, June 10, 2026.
Market data from the Central Bank of Nigeria showed that the local currency slumped, closing at N1,363 per dollar, down from N1,359.500 the previous day.
Market participants said improved investor confidence and stronger foreign reserve levels helped support the local currency despite persistent global uncertainty.
According to a report by MarketForces Africa, Nigeria’s external reserves also climbed above the $50 billion mark, reinforcing confidence in the country’s ability to defend the naira and meet external obligations.
Economic experts believe the reserve growth could provide the Central Bank of Nigeria with stronger liquidity buffers as authorities continue efforts to stabilise the foreign exchange market and curb volatility.
Source: Getty Images
“This is unprecedented in 17, 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 at a time when emerging economies are facing renewed pressure from rising energy costs, inflation concerns and geopolitical tensions across major global markets.
Naira falls against dollar despite rising reserves
Legit.ng earlier reported that Nigeria’s currency weakened slightly against the United States dollar on Thursday, June 5, 2026, despite the country’s foreign reserves climbing close to their highest level in nearly two decades, highlighting continued pressure in the foreign exchange market.
Fresh data released by the Central Bank of Nigeria showed the naira depreciated by 0.11 per cent at the Nigeria Foreign Exchange Market (NFEM), closing at ₦1,358.75 per dollar compared to ₦1,357.27 recorded a day earlier.
The latest movement reflects ongoing demand pressure for foreign exchange as international payment obligations continued to outweigh FX inflows into the official market.
Source: Legit.ng
