Dollar index at one-week high as Fed holds rates steady; safe haven demand supports

The dollar index accelerated further gains to hit a one-week high on Thursday after the US Feds decision to keep the policy rate unchanged at the 4.25%4.50% range at its June meeting on Wednesday. Fed Chair Jerome Powell signaled, in a post-meeting press conference, that inflation remains somewhat above goal and could rise in the future, citing the impact of US President Donald Trumps tariffs. However, the central bank expects to cut the rates two times, as indicated by the dot plot. Meanwhile, the greenback also draws support from safe haven demand amid heightened Middle East tensions. The dollar index that measures the greenback against a basket of currencies is quoting at 98.60, up 0.14% on the day. Among the basket currencies, EURUSD and GBPUSD are trading lower by around 0.1% at $1.1528 and $1.3410 respectively.

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