US Dollar Bounces Back Amid Escalating Global Tensions
The US Dollar regained some ground in the Asian session on Thursday after plummeting the previous day due to the Federal Reserve's decision to keep interest rates unchanged.
The US Dollar Index (DXY) rose by 0.12% to near 100.92, as fears of further escalation in the Middle East war boosted the safe-haven appeal of the Greenback.
Earlier this week, the Federal Reserve's (Fed) monetary policy announcement left interest rates unchanged at 3.50%-3.75%, with three out of 12 Federal Open Market Committee (FOMC) members dissenting from the hold and voting for a 25-basis-point interest rate hike.
Fed Chairman Kevin Warsh emphasized that the central bank has no tolerance for inflation above the 2% target, stating 'Committee remains resolute to deliver price stability... We will not hesitate to act.'