The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 99.60 during the Asian trading hours on Wednesday. The DXY holds steady as traders wait on the sidelines ahead of the US Federal Reserve (Fed) interest rate decision later on Wednesday.
Intensifying conflict in the Middle East could boost the safe-haven demand, which supports the US Dollar against its rivals. The BBC reported on Tuesday that Iranian security chief Ali Larijani was killed in Israeli air strikes. Iranian army chief Amir Hatami vowed to launch a “decisive and regrettable” retaliation for the killing of security chief Ali Larijani in an Israeli air strike.
“Geopolitical tensions in the Middle East have once again reinforced the USD’s role as a primary safe-haven currency,” HSBC forex analysts wrote in a…
