Dollar Holds Gains Amid Middle East Tensions, Fed Policy Expectations

The US dollar remained strong on Wednesday, nearing a one-month high as investors sought safe-haven assets amidst renewed tensions in the Middle East.

The dollar's strength was partly due to expectations that the Federal Reserve may maintain its current policy stance or signal possible changes in interest rates. Market participants were cautious ahead of the Fed's announcement, which is expected to provide fresh signals on monetary policy direction.

Oil prices rose after the US military intercepted ballistic missiles launched by Iran toward American forces stationed in the region, further boosting demand for the dollar as a safe-haven asset. The euro struggled under pressure from the stronger dollar, trading near its lowest level this month at $1.1386.