Published On 4/29/2026
The US dollar maintained its stability in market trading, as investors awaited the Federal Reserve’s decision on interest rates, in light of the continuing tensions related to the war in the Middle East, according to what was reported by Global Banking and Finance.
Currencies moved within narrow ranges during limited Asian sessions, with Japanese markets closed for a holiday, and anticipation of upcoming decisions from major central banks during the week.
Currency movements
The euro fell 0.07% to $1.1705, while the British pound fell 0.05% to $1.3513, moving away from their highest levels earlier in the month.
On the other hand, the dollar index stabilized at 98.68, while the Canadian dollar saw little change at 1.3685 Canadian dollars ahead of the Bank of Canada’s decision.
Watch the Fed
The Federal Reserve’s decision takes center stage, with widespread expectations to keep interest rates unchanged, while the focus is on the bank’s assessment of the repercussions of the war on the economy, in addition to the future of its Chairman, Jerome Powell.
“The question is what Powell will do,” said Carol Kong, currency analyst at the Commonwealth Bank of Australia, noting the possibility of him remaining on the Board of Governors until 2028 or stepping down after his term ends. She added that his decision may depend on his assessment of the independence of the central bank in light of political pressures.
In the same context, the stalemate in the talks related to the war in Iran has kept market sentiment fragile, at a time when the dollar continues to benefit from the demand for it as a safe haven, according to Global Banking and Finance.
The yen is under pressure
The Japanese yen stabilized near 159.63 against the dollar, despite the Bank of Japan indicating the possibility of gradually raising interest rates in the coming months. Bank Governor Kazuo Ueda confirmed the institution’s readiness to act if the energy shock is reflected in inflation more broadly.
Sim Moh Siong, an analyst at OCBC Bank, said, “Any rate hike will be gradual,” noting that current yen levels keep the possibility of intervention around the 160 level.
