Dollar Tumbles as Divided Fed and Escalating Mideast Conflict Drive Oil Prices Higher

The US Dollar fell sharply in forex trading after the Federal Reserve decided to hold interest rates steady. The decision was widely expected, but the accompanying statement revealed a split among policymakers.

Several members pushed for a rate hike, citing persistent inflation, while others argued for a cut to support a slowing economy. This lack of consensus eroded confidence in the dollar's near-term trajectory.

The US Dollar Index (DXY) fell by over 0.8%, its largest single-day drop in three weeks. The euro and Japanese yen both strengthened against the greenback, with EUR/USD climbing above 1.0850 and USD/JPY slipping below 150.00.