The US dollar stabilized on Wednesday near its highest level in a month, supported by capital flows towards safe havens after the outbreak of hostilities again in the Middle East, while traders await an important decision from the Federal Reserve regarding the interest rate later in the day.
Currency movements were largely limited at the beginning of Asian trading, as investors committed to waiting ahead of the Federal Open Market Committee’s decision, with markets expecting a 33% probability of raising the interest rate by 25 basis points.
Adding to inflation fears, oil prices returned to rising after the US military announced that it had intercepted several ballistic missiles launched by Iran towards US forces in the Middle East.
