US Dollar Holds Strong Amid Middle East Tensions
The US dollar held strong in trading on Wednesday (June 10), with the dollar index hovering around the 100 level. This strengthening followed a sharp rebound in the previous session. Market sentiment returned to caution as tensions in the Middle East escalated and raised doubts about the sustainability of the ceasefire that had begun to form.
Tensions flared again after the United States launched an attack on Iran. Washington described the attack as an act of self-defense after a US military helicopter was shot down. This situation led the market to reassess that geopolitical risks in the Middle East remain high and have not yet fully subsided.
From Iran, Foreign Minister Abbas Araghchi warned that the Iranian armed forces would not allow any attack or threat to go unanswered. This statement heightened market participants' vigilance over the possibility of further escalation. If the conflict escalates, the impact could be felt on energy markets, particularly oil, as the Middle East plays a crucial role in global energy supplies.
Rising energy prices due to the conflict have also raised new concerns about inflation. If oil and energy prices continue to rise, global inflationary pressures could potentially increase again. This situation could make central banks, including the Fed, more cautious in their decision-making and even open up the possibility of maintaining or raising interest rates for a longer period.
Currently, investors are focused on the latest US inflation data. This data will provide important clues to the Fed's future policy direction. Previously, stronger-than-expected US employment data had strengthened expectations that interest rates could still rise before the end of the year. Outside the US, markets are also monitoring the possibility of interest rate hikes from the European Central Bank and the Bank of Japan this month. (asd)
Source: Newsmaker.id
