Dollar Held, Investors Await Central Banks
The US dollar held near a one-week high on Tuesday (July 21), while Asian currencies moved within a narrow range. Investors were still weighing the escalation of conflict in the Middle East amid initial hopes for a ceasefire.
The US dollar index hovered around 100.93 after briefly touching its highest level since July 15 on Monday. The euro strengthened to US$1.1420, while the pound rose 0.1% to US$1.3448 after British Prime Minister Andy Burnham pledged to maintain fiscal discipline.
The US-Iran conflict remains a major market concern. US Central Command stated it had completed its ninth consecutive night of attacks on Iranian command centers, missile and drone launch sites, and maritime infrastructure.
Risks also increased after the Iran-backed Houthi group in Yemen announced a naval blockade of Saudi Arabia. This threat sparked renewed concerns about disruptions to energy shipments from the Middle East.
Oil prices briefly moved sharply near a six-week high before easing. The market is still weighing the threat to global energy supplies, with reports that mediators have proposed a 10-day ceasefire to Iran.
As a result, the US dollar still has the potential to be supported by safe-haven sentiment and high Treasury yields. However, if the prospect of a ceasefire strengthens, pressure on the dollar could emerge. Investors' next focus will be on Bank Indonesia's decision, the ECB meeting, and the Bank of Japan and the Fed's meetings next week. (arl)
Source: Newsmaker.id
