Dollar Finds Footing After Fed Holds Rates Amid Iran Strikes

The US dollar found stability at the start of Asian trading on Thursday after the Federal Reserve kept its policy interest rate unchanged. The dollar index, which measures the greenback's strength against six currencies, rose by 0.1 per cent to 100.89.

The decision was made despite three committee members dissenting in favour of a July hike. Chair Kevin Warsh did not flag an imminent hike, echoing June's tone, which is starting to unsettle investors. A Fed unwilling to commit to further tightening raises questions about whether it can keep long-term inflation expectations anchored.

Treasury bonds reacted violently to the Fed decision, with the 30-year yield climbing to its highest in almost two decades. Meanwhile, cryptocurrencies saw some movement, with Bitcoin up 0.3 per cent at US$63,650.06 and ether 0.7 per cent higher at US$1,896.66.