Dollar Bounces Back After Fed Holds Rates Amid Market Uncertainty
The US dollar regained its footing at the start of Asian trading on Thursday after the Federal Reserve kept interest rates unchanged. The decision was seen as a surprise by some investors, with Chair Kevin Warsh's ambiguous comments adding to market uncertainty.
The dollar index, which tracks the greenback against six currencies, rose 0.1% to 100.89 following the Fed's announcement. This came after the US launched air strikes in Iran, which helped offset earlier weakness in the dollar.
The British pound fell 0.1% to $1.3355 ahead of a Bank of England interest rate decision on Thursday, while the euro slid 0.1% to $1.1457. The Australian and New Zealand dollars were steady at $0.6959 and $0.5795 respectively.
Cryptocurrencies also saw some movement, with Bitcoin rising 0.3% to $63,650.06 and ether gaining 0.7% to $1,896.66.