Dollar Holds Firm Amid Middle East Tensions, Hawkish Fed Bets
The US dollar has stabilized its recent gains in mid-session trading, buoyed by safe-haven demand driven by ongoing Middle East uncertainty and expectations of a hawkish Federal Reserve.
Investors are seeking the relative safety of the US dollar as tensions escalate in the region, prompting diplomatic standoffs and heightened military activity.
The dollar index, which measures the greenback against six major currencies, has remained near its highest level in several weeks, reflecting investor caution and shifting rate expectations.