Currency Fluctuations Amidst Middle East Tensions and Fed's Decision

The U.S. dollar showed volatility against major currencies as geopolitical tensions between Israel and Iran escalated, causing investor anxiety ahead of the Federal Reserve's anticipated decision on interest rates. For the past six days, Israel has been active against Iran's nuclear activities, calling for political change in the region.

The situation intensified as U.S. military bolstered regional presence, increasing fears of American intervention in an area vital for energy resources. The dollar, serving as a safe haven, gained roughly 1% since Thursday, reversing annual declines stemming from concerns over U.S. economic health due to President Trump's trade policies.

As crude prices surged to $75 a barrel, affecting the euro and yen in particular, investor attention turned to the Federal Reserve, with expectations that borrowing costs would remain unchanged amidst rising Middle Eastern conflict and uncertainties from Trump's policies.

(With inputs from agencies.)