Dollar Bounces Back as Fed Holds Rates Amid Iran Strike Tensions

The US dollar rebounded in Asian trading on Thursday after the Federal Reserve kept its policy interest rate steady and Chair Kevin Warsh's vague comments about future rate hikes.

The dollar index, which measures the greenback's strength against six currencies, nudged up 0.1% to 100.93 following the Fed decision.

Market participants were divided on the implications of the Fed's decision, with some analysts expecting a hike in the near future and others seeing it as a temporary dip.

'Despite three committee dissents in favour of a July hike, Chair Warsh stopped short of flagging an imminent hike, echoing June's tone,' said IG market analyst Fabien Yip.

In cryptocurrencies, Bitcoin was up 0.9% at $64,020.20 and ether rose 1.1% to $1,903.12.