Dollar Gains Ground After Fed Holds Rates Amid Iran Air Strikes
The U.S. dollar strengthened on Thursday following the Federal Reserve's decision to keep interest rates unchanged, with Chair Kevin Warsh signaling a cautious approach ahead. The move came amid reports of air strikes in Iran, which boosted demand for safe-haven assets like the dollar and Treasury bonds. Against major currencies, the euro fell slightly to $1.1458 while the yen weakened near 163.5 per dollar. The pound remained steady at $1.337 ahead of a Bank of England rate decision later in the day. Analysts noted that Warsh's comments were interpreted as dovish by markets, though Treasury yields rose sharply after the Fed announcement. Investors are now turning attention to inflation data and future central bank moves, with expectations for another Fed hold at 30% in September—up from earlier forecasts. The Personal Consumption Expenditures Index is expected to show easing price pressures due to lower energy costs.
Topics: air strikes in Iran currencies Federal Reserve U.S. dollar