The US Dollar Index rises 0.12% to 100.92 after US strikes on Iran heighten geopolitical risks and lift demand for the Greenback.
The US Dollar Index (DXY) climbed 0.12% to 100.92 in early Asian trading, recovering from a sharp decline the prior session. The rebound follows US military strikes against Iran, escalating Middle East tensions and reinforcing the USD’s safe-haven appeal.
On Wednesday, the Federal Reserve held interest rates steady at 3.50%-3.75% for the fifth consecutive meeting, triggering a sell-off in the Dollar. Three FOMC members dissented, advocating for a 25-basis-point hike, while Fed remarks suggested no immediate policy shifts.
The USD showed strength against the British Pound but remained under pressure from recent dovish Fed signals. Geopolitical developments now overshadow monetary policy as the key driver for near-term USD movements.