Dollar Dominates: A Resurgence Amid Fed's Steady Approach

The dollar reached a two-month high on Thursday, driven by Federal Reserve Chair Jerome Powell's steady rate policy. Powell refrained from indicating a timeline for rate cuts, giving the dollar a boost amid economic resilience and easing trade tensions.

Currency traders noted the dollar's path towards its first monthly gain of the year, bolstered by a hawkish Fed stance and emerging trade deals from Washington. The dollar index sat at 99.77, inching close to its recent peak of 99.987.

Analysts highlight that geopolitical developments and trade agreements, like South Korea's recent accord with the U.S., could further influence currency dynamics. Meanwhile, the Bank of Japan's upcoming policy decisions are being closely watched, with potential implications for the yen's valuation.

(With inputs from agencies.)