The U.S. dollar is set to conclude its strongest week since October, buoyed by stronger-than-anticipated economic data and a hawkish Federal Reserve outlook. Tensions between the U.S. and Iran add to global market jitters, further accentuating the dollar’s rally.
In the Asian session, currencies mostly stayed in range except for the Australian and New Zealand dollars, which fell amid a cautious investment environment. Investors were nervous about potential U.S. military actions in the Middle East. Sterling hit a one-month low and the euro fell due to ECB uncertainties.
Hawkish comments from the Fed minutes suggest possible rate hikes if inflation persists. Meanwhile, geopolitical concerns lend safe-haven support to the dollar. Markets await U.S. core PCE price index and GDP figures, driving further currency movements.