NEW YORK: The dollar rose broadly against major peers on Wednesday as investors awaited a US Federal Reserve policy decision, with markets also on edge over an Iran war that shows little sign of easing.
Caution prevailed ahead of a wave of major central bank meetings over the next two days, including decisions from the European Central Bank, the Bank of England and the Bank of Canada.
Investors are also eyeing a packed earnings slate, with Amazon, Microsoft and Meta set to report results after the close.
The Fed is widely expected to leave interest rates unchanged, putting the spotlight on policymakers’ assessment of how the war could affect the economic outlook. The meeting could be Jerome Powell’s last as Fed chair, with the full US Senate poised to confirm Kevin Warsh after he cleared a key committee vote on Wednesday.
The euro slipped 0.18 percent to USD1.16915, while sterling fell 0.24 percent to USD1.34870.
The dollar rose 0.19 percent to 0.791 Swiss francs, while the dollar index gained 0.27 percent to 98.85.
US President Donald Trump discussed how to mitigate the impact of a possible months-long US blockade of Iran’s ports with US oil companies, a White House official said on Wednesday.
Oil prices climbed for an eighth straight session — the longest run since May 2022 following Russia’s invasion of Ukraine — with the front-month June contract, which expires on Wednesday, up 5.5 percent at USD117.42 a barrel.
The yen traded above 160 per dollar, edging closer to levels that have previously triggered intervention, despite the Bank of Japan signaling after its policy meeting on Tuesday that it could raise rates in coming months.
The Japanese currency has fallen about 0.6 percent against the dollar and more than 2 percent since the war began, partly reflecting Japan’s vulnerability to higher imported energy costs.
The yen was last down 0.36 percent at 160.17 per dollar and down 0.17 percent at 187.22 per euro.
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