Dollar Steadies Amid Fed Dovishness and Escalating Tensions with Iran

The US dollar regained its footing at the start of Asian trading on Thursday after the Federal Reserve decided to keep its policy interest rate unchanged. This move by the Fed came as a surprise to many, and Chair Kevin Warsh left markets guessing about how divisions within the rate-setting committee would be resolved.

The dollar index, which measures the greenback's strength against six currencies, rose 0.1% to 100.89 after the US said it was conducting air strikes in Iran. This unexpected development gave the dollar a boost as investors sought safe-haven assets amidst the increased tensions.