Fed Decision Could Test Dollar's Resilience to Lower Oil Prices -- Market Talk

Dow Jones06-17 17:15

0915 GMT - The Federal Reserve's policy decision at 1800 GMT could test the dollar's resilience to lower oil prices after the U.S. and Iran agreed an interim peace deal, ING's Francesco Pesole says in a note. The dollar needs confirmation that policymakers, especially new Fed Chair Kevin Warsh, are open to raising rates in future even if rates are held steady Wednesday, he says. "If Warsh or the broader Federal Open Market Committee signal a stance that is clearly at odds with market pricing, the dollar would sell off sharply." However, removing the policy easing bias should be enough to support the currency, he says. The DXY dollar index trades flat at 99.561. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

June 17, 2026 05:15 ET (09:15 GMT)

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