Dollar Steadies Ahead of Fed Decision

2026-06-17 01:02 By Jam Kaimo Samonte 1 min. read

The dollar index hovered around 99.5 on Wednesday after experiencing heightened volatility earlier in the week, as investors awaited the Federal Reserve’s latest policy decision, where officials are widely expected to leave interest rates unchanged.

The meeting will also be the first under new Chair Kevin Warsh, although he is not expected to submit a "dot" to the FOMC’s quarterly projections outlining individual policymakers’ rate expectations.

Market participants will also focus on upcoming US retail sales and pending home sales data for further clues on the economic outlook.

Earlier this week, the Reserve Bank of Australia kept its benchmark interest rate unchanged at 4.35%, while the Bank of Japan raised its policy rate by 25 basis points to 1%.

Meanwhile, investors continued to monitor developments surrounding the US-Iran peace agreement, which is set to be signed on Friday and is expected to reopen the Strait of Hormuz and restore oil flows from the Middle East.



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Dollar Steadies Ahead of Fed Decision
The dollar index hovered around 99.5 on Wednesday after experiencing heightened volatility earlier in the week, as investors awaited the Federal Reserve’s latest policy decision, where officials are widely expected to leave interest rates unchanged. The meeting will also be the first under new Chair Kevin Warsh, although he is not expected to submit a "dot" to the FOMC’s quarterly projections outlining individual policymakers’ rate expectations. Market participants will also focus on upcoming US retail sales and pending home sales data for further clues on the economic outlook. Earlier this week, the Reserve Bank of Australia kept its benchmark interest rate unchanged at 4.35%, while the Bank of Japan raised its policy rate by 25 basis points to 1%. Meanwhile, investors continued to monitor developments surrounding the US-Iran peace agreement, which is set to be signed on Friday and is expected to reopen the Strait of Hormuz and restore oil flows from the Middle East.
2026-06-17
Dollar Stabilizes Ahead of Fed Meeting
The dollar index steadied around 99.6 on Tuesday after weakening in the previous session, as investors turned their focus from the US-Iran peace deal announcement to the Federal Reserve’s upcoming policy meeting. The central bank is widely expected to leave interest rates unchanged at its first meeting under new chair Kevin Warsh. Still, policymakers face a challenging backdrop, with recent inflation data coming in hotter than expected as the conflict with Iran drove energy prices higher. Investors also looked ahead to policy decisions from central banks in Japan, Australia, the UK, and other major economies this week. On Monday, the dollar came under pressure after President Donald Trump announced that the US had reached a peace agreement with Iran that would restore access through the Strait of Hormuz. The deal is expected to be signed in Switzerland on Friday.
2026-06-16
Dollar Falls on US-Iran Peace Deal
The dollar index slipped to around 99.5 on Monday, marking its lowest level in more than a week after the US and Iran struck a peace agreement that would restore access through the Strait of Hormuz, curbing demand for the dollar as a safe-haven asset. The announcement also pushed oil prices to a two-month low, helping ease fears of stronger inflation and tighter monetary policy. The agreement is expected to be signed in Switzerland on June 19 and reportedly includes lifting blockades, easing sanctions on Iran, and dismantling Tehran’s nuclear program. Investors are now turning their attention to the US Federal Reserve’s first policy meeting under new chair Kevin Warsh, with markets widely expecting rates to remain unchanged. The Reserve Bank of Australia and the Bank of England are also seen holding policy steady this week, while the Bank of Japan is expected to raise interest rates to bolster its currency.
2026-06-15