Dollar Holds Steady Amid Hawkish Fed Bets and Middle East Tensions

The US dollar has steadied its recent gains in mid-session trading, supported by safe-haven demand from ongoing Middle East uncertainty and growing expectations that the Federal Reserve will keep interest rates higher for longer.

Middle East geopolitical risks are fueling safe-haven flows as investors seek the relative safety of the US dollar. Recent developments, including heightened military activity and diplomatic standoffs, have increased uncertainty in global markets.

The dollar index remains near its highest level in several weeks, reflecting investor caution and shifting rate expectations. Hawkish Fed bets are also providing a tailwind for the dollar as recent comments from Fed officials signal a cautious approach to rate cuts.