Dollar Edges Higher as Markets Await Fed Minutes
The dollar index strengthened after Iran and the United States reported progress in nuclear talks, while Japan agreed on a major investment plan in the US. This sentiment helped boost the dollar, as markets awaited key catalysts from the Federal Reserve's meeting minutes.
Iran stated that the two sides reached an understanding on several principles, and the US also confirmed progress in the talks. These developments are seen as reducing some geopolitical uncertainty, thus supporting the dollar's movement.
Meanwhile, Japan is said to be investing approximately $36 billion in the United States, covering critical minerals, oil and gas infrastructure, and power generation. This plan is part of a $550 billion strategic trade and investment agreement.
Commerzbank economist Volkmar Baur believes that if the investment materializes at the agreed level, it has the potential to have a positive impact on the dollar. The market believes that investment flows and cross-border cooperation could strengthen the dollar's position in the medium term.
Investors now await the release of the FOMC Meeting Minutes at 19:00 GMT for clues on the direction of interest rates. In recent trading, the dollar index (DXY) rose 0.2% to 97.298.
Source: Newsmaker.id
