Dollar Steadies Near One-Month High Amid Inflation Fears and Middle Eastern Tensions

The US dollar has remained steady near a one-month high due to safe-haven flows after renewed hostilities in the Middle East. Investors are awaiting the Federal Reserve's interest rate decision, with markets pricing in a 33% chance of a 25-basis-point hike.

Oil prices have risen again following reports that the US military intercepted multiple ballistic missiles launched by Iran towards US forces in the region. This has added to inflation fears, which are already being watched closely by investors ahead of the Fed's decision.

Fabien Yip, a market analyst at IG, believes the Fed will keep interest rates on hold due to ongoing uncertainties in the Middle East and differing central bank policies between countries.