Dollar Holds Steady as Markets Focus on Ukraine Summit and Fed Signals
The U.S. dollar steadied against most major currencies on Tuesday, as global markets turned their attention to the White House summit between President Donald Trump and European leaders, a meeting expected to shape the next phase of the war in Ukraine.
The dollar index rose 0.31% to 98.122, supported by heightened geopolitical tensions after Trump assured Ukrainian President Volodymyr Zelensky that the United States would help guarantee Ukraine’s security in any potential deal with Russia.
Tina Teng, an independent market analyst at Auckland, said investors are exercising caution as they weigh possible repercussions for global energy markets. She added, “The dollar is gaining strength against other currencies, with risk appetite currently driving markets, reflected in the record highs of equity indexes.”
In currency markets, the euro held at $1.1667, up 0.06% in Asian trading, while the dollar traded at 147.835 yen, little changed from Monday’s U.S. session. The Australian dollar rose 0.1% to $0.6495, and the New Zealand dollar gained the same to $0.59245. The British pound climbed 0.1% to $1.351, continuing its rebound from last week’s lows.
Meanwhile, cryptocurrencies extended their declines. Bitcoin slipped 0.3% for a third straight day, while Ether fell 0.6%.
Markets are also awaiting comments from Federal Reserve Chair Jerome Powell at the annual Jackson Hole symposium later this week, which are expected to shed light on the economic outlook and the Fed’s policy path.
