1521 GMT - The Federal Reserve is likely to keep interest rates steady on Wednesday as the Iran war forces it to maintain a cautious approach but that probably won't have much dollar impact, say strategists in Unicredit's The Investment Institute. The dollar is almost completely driven by the Middle East crisis, they say in a note. The conflict should keep the dollar firm due to its safe-haven role, with the currency showing a positive correlation to U.S. stock volatility. Factors behind the dollar's past weakness, including uncertainty over the U.S. economy, Fed policy and tariffs, are being overshadowed by war, they say. The DXY dollar index rises 0.4% to 100.177 after earlier reaching a three-and-a-half-month high of 100.299. (renae.dyer@wsj.com)
(END) Dow Jones Newswires
March 13, 2026 11:21 ET (15:21 GMT)
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