Dollar Steadies Amid Rate Decision and Middle East Tensions

The US dollar recovered slightly at the start of Asian trading on Thursday after the Federal Reserve decided to keep its policy interest rate unchanged. The decision was a relief for investors, who had been expecting a hike in rates.

The dollar index, which measures the greenback's strength against six currencies, rose by 0.1% to 100.89 after the Fed announcement. This came as the US said it was conducting air strikes in Iran, which added to market volatility.

The British pound and euro were weaker than the dollar, with the pound at $1.3355 and the euro at $1.1457. However, the Australian dollar and New Zealand dollar remained steady, while the yen held its level at 163.455 yen per US dollar.

Market analysts are still trying to make sense of the Fed's decision, with some expressing concern that the central bank may not be doing enough to control inflation. Treasury bonds reacted violently to the Fed announcement, with the 30-year yield climbing to its highest in almost two decades.