2026.06.1801:17:25UTC+00Dollar Remains Firm on Hawkish Fed Signals

The dollar index remained above the 100 mark on Thursday after surging nearly 1% in the previous session, as the Federal Reserve left interest rates unchanged but signaled growing support for rate hikes later this year. Half of FOMC members now anticipate at least one rate increase in 2026, while the central bank sharply raised its inflation forecasts in response to the economic fallout from the conflict in the Middle East.

Meanwhile, new Fed Chair Kevin Warsh declined to provide guidance on the timing of the next policy move but emphasized that inflation has remained above the Fed’s 2% target for several years and reaffirmed the central bank’s commitment to restoring price stability.

On the geopolitical front, President Donald Trump signed an interim agreement to end the war with Iran and reopen the Strait of Hormuz, although it remains unclear whether Iran has begun implementing measures to fully restore traffic through the critical shipping route.