2026.04.3002:12:11UTC+00Dollar Holds Gains After Fed Decision

The dollar index hovered near 99 on Thursday, holding on to recent gains after the Federal Reserve kept its policy rate unchanged as expected but struck a more hawkish tone amid mounting inflation concerns. Four policymakers dissented, arguing the Fed should drop its easing bias altogether, highlighting deepening internal divisions over the policy outlook as uncertainty grows around the Iran conflict. Markets have now fully priced out Fed rate cuts for this year and have even begun assigning some probability to a rate hike in 2027. Investors are now looking ahead to monetary policy decisions from the European Central Bank and the Bank of England later in the day. The dollar also found support from heightened geopolitical tensions in the Middle East, after President Donald Trump said the US would maintain its naval blockade of Iran until a nuclear agreement is reached, while Tehran accused Washington of trying to force Iran into submission through economic pressure.