$USDC The us Dollar slides lower ahead of the Fed's decision as tensions in the Middle East persist
The US Dollar Index (DXY), which measures the value of the Dollar against a basket of six major currencies, is trading slightly lower on Wednesday after gaining about 0.7% the day before. Traders remain cautious ahead of the Federal Reserve's (Fed) interest rate decision scheduled for 18:00 GMT, which could set the tone for the Dollar's next move.
The DXY is at a balance point, floating just below Tuesday's high and its 21-day exponential moving average (EMA). At the time of writing, the index is trading around 98.60, with an intraday high of 98.88, as traders refrain from making aggressive bets.
Although the US Dollar Index remains generally pressured by ongoing concerns over new tariffs, it has regained some appeal as a safe haven amid the escalating conflict between Iran and Israel. Increased geopolitical tensions have led investors to seek refuge in the Dollar, helping the DXY record a modest recovery from near a three-year low.
The US Dollar has also resumed its role as a defensive asset, having gained about 1% against both the Japanese Yen (JPY) and the Swiss Franc (CHF) since last Thursday. However, on Wednesday, the Dollar takes a pause in its advance, slightly ceding ground against the Yen and the Franc and recording more notable losses against the Euro (EUR) and the British Pound (GBP), as market participants await clearer signals from the Fed's policy update.
USDC
0.9997
-0.01%
