Dollar Holds Steady Amid Geopolitical Tensions and Central Bank Meetings
The dollar remained stable in volatile trading as investors watched escalating tensions between Israel and Iran, considering potential economic impacts. The geopolitical climate, coupled with central bank meetings, added to the market's uncertainty, while oil prices steadied following recent rallies. Analysts await U.S. Federal Reserve updates on interest rates.
The dollar maintained its stability in a turbulent market on Monday as investors closely monitored the conflict between Israel and Iran, wary of a potential regional escalation. With tensions high, market players considered the possibility of Iran disrupting the Strait of Hormuz, a crucial oil passage, heightening economic concerns.
The dollar stood firm at 144.29 Japanese yen, following a 0.4% rise. Meanwhile, the euro climbed 0.25% to $1.1583, and the dollar remained steady against the Swiss franc. An index tracking the dollar against six key currencies dipped 0.3%, settling at 97.97 amid mixed currency movements globally.
This geopolitical situation presents a new challenge for investors as they navigate economic uncertainties spurred by U.S. trade policies. All eyes are now on the U.S. Federal Reserve which will issue its policy decision on Wednesday, divulging its stance on interest rates amidst softening economic growth data and looming inflation risks.
(With inputs from agencies.)
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