Dollar Finds Footing After Fed Hold and Iran Air Strikes

The US dollar found its footing on Thursday after the Federal Reserve kept interest rates steady. The decision was seen as dovish by investors, who initially viewed it as a sign that the Fed is in no rush to hike rates.

Chair Kevin Warsh's comments at the press conference did not suggest the Fed is eager to raise rates, and he referred to a 'period of watchful thinking'. The market interpreted the FOMC statement and Warsh's comments as dovish.

The greenback rose against most major currencies after the US said it was conducting air strikes in Iran. This generated appetite for safe havens among investors, with the euro weakening 0.1% to $1.1458 and the yen trading around 163.5 to the dollar.

The focus will now be on the Personal Consumption Expenditures Index due at 1230 GMT. Economists expect the index to show price pressures rose by 3.7% on an annual basis in June, down from 4.1% the month before.