Dollar Holds Strong After Fed's Hawkish Signal
The US dollar held strong on Thursday (June 18th) after the dollar index rose above 100. This strengthening occurred after the greenback surged nearly 1% in the previous session, driven by the Federal Reserve's decision to keep interest rates unchanged but leave open the possibility of a hike by the end of the year.
Half of the FOMC members now expect at least one rate hike in 2026. The Fed also sharply raised its inflation projections, reflecting concerns that the economic impact of conflicts in the Middle East could continue to keep price pressures high.
New Fed Chairman Kevin Warsh did not provide direct guidance on the next policy steps. However, he emphasized that inflation has remained above its 2% target for the past several years and that the central bank remains committed to restoring price stability.
From a geopolitical perspective, President Donald Trump has signed an interim agreement to end the war with Iran and reopen the Strait of Hormuz. However, the market is still waiting for confirmation on whether Iran has begun taking concrete steps to fully reopen this vital shipping lane. (asd)
Source: Newsmaker.id
