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29.04.202601:28:20UTC+00Dollar Steadies Ahead of Fed Policy Decision

The US dollar index held near 98.6 on Wednesday, stabilizing after heightened volatility earlier in the week as markets positioned ahead of the upcoming Federal Reserve policy meeting, widely expected to be Chair Jerome Powell’s final one before his term ends in May. The Fed is broadly anticipated to leave interest rates unchanged, with investors closely watching how officials frame the economic risks stemming from the Middle East conflict. Several other major central banks, including those in the Eurozone, the UK, and Canada, are also scheduled to announce policy decisions this week, while the Bank of Japan delivered a hawkish hold on Tuesday. Meanwhile, stalled US-Iran negotiations and the ongoing closure of the Strait of Hormuz have intensified inflation concerns, bolstering demand for the safe-haven dollar. President Donald Trump has reportedly rejected Tehran’s latest proposal, insisting that nuclear-related issues be addressed at the outset of any agreement.

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