Dollar Falls Amid Treasury Selloff and Middle East Tensions
The US dollar declined against major currencies on Wednesday, following an easing of Treasury selloff. Investors were looking to minutes from the Federal Reserve's latest policy meeting for fresh guidance amidst renewed Middle East tensions.
Markets had been left searching for catalysts due to a sparse data calendar, and the minutes were anticipated to provide a comprehensive read on policymakers' thinking. However, with Fed Chair Kevin Warsh reticent on the rate outlook, the euro rose 0.31% to $1.1611, while the yen strengthened 0.35% against the dollar.
Meanwhile, a stalemate in the Middle East pushed oil prices to three-week highs, maintaining inflation risks. President Donald Trump confirmed that no talks were underway with Iran and stated that the Strait of Hormuz was open despite Iranian claims it was shut.