Dollar Surges After Fed Decision Amid Escalating Middle East Tensions

The US dollar index received support from two directions after the Federal Reserve's decision to keep its benchmark rate unchanged in the 3.50 to 3.75% range.

The Fed's decision was not unanimous, with three members of the Open Market Committee voting against it and pushing for a 25 basis point hike.

Fed Chair Kevin Warsh told reporters that the central bank remains committed to its 2% inflation target and that inflation can't be cured in nine weeks.

The dollar's recovery was also fueled by safe-haven demand amid escalating tensions in the Middle East, where strikes were exchanged over the past day.