Steady Dollar Amid Geopolitical Tensions and Fed Rate Speculations

Amid looming U.S. inflation data, the dollar maintained its stability on Wednesday, as geopolitical tensions stirred investor uncertainty. Crucial employment figures were released last week, revealing fewer job additions than anticipated, indicating a likely rate cut from the Federal Reserve in the upcoming meeting.

Despite these forecasts, market confidence endured, with equities maintaining record highs. The dollar's resilience persisted even as investors speculated on a potential half-point cut, juxtaposed against global unrest—highlighted by Israel's airstrike in Qatar and Poland's defense against drone incursions.

Traders pricing a quarter-point Fed cut next week keep a watchful eye on inflation reports. Meanwhile, the political landscape trembles with resignations of France's and Japan's prime ministers, adding uncertainty to the economic outlook of two major global economies.

(With inputs from agencies.)