Dollar Steadies as Fed Holds Rates Amid Ongoing US-Iran Tensions

The US dollar steadied in Asian trading on Thursday after the Federal Reserve kept its policy interest rate unchanged and Chair Kevin Warsh's comments left markets guessing about future rate hikes.

The dollar index, which measures the greenback's strength against six currencies, rose by 0.1% to 100.93 following the US's announcement of air strikes in Iran.

This move offset earlier weakness in the greenback, which had fallen to its weakest since July 20 after the Fed decision.

Marcets were expecting no change from the Bank of England interest rate decision due later on Thursday, with analysts like Fabien Yip saying that Chair Warsh's comments 'stopped short of flagging an imminent hike, echoing June's tone.'