Dollar Steady Amid Global Economic Uncertainty Ahead of Fed, BOJ Decisions

The dollar held steady on Monday as investors awaited key decisions from the Federal Reserve and Bank of Japan.

Global policymakers are grappling with rising oil prices, which have surged above $100 per barrel due to the ongoing US-Israeli war in Iran. This has led to erratic pricing pressures, causing central banks to reassess their monetary policies.

The European Central Bank raised rates last week and warned of further hikes, setting the stage for the Fed's decision on Wednesday and a widely expected rate hike from the BOJ on Friday.

Market analysts say that the Fed could decide to wait before raising interest rates, but this is complicated by its October meeting being close to the US midterm elections. If it waits until December, the move will be too long delayed.