Created
: 2025.06.19
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
US Dollar Index moves above 99.00 due to Fed Rate hold, escalating Middle-East tensions
World FX news
Breaking news
US Dollar Index moves above 99.00 due to Fed Rate hold, escalating Middle-East tensions
New
2025.06.19 12:12
2025.06.19 12:12
2025.06.19 12:12
- US Dollar Index appreciates amid the ongoing Israel-Iran conflict.
- The Federal Reserve announced to keep the policy rate unchanged at the 4.25%-4.50% range in June.
- Fed Chair Powell signaled that inflation could rise in the upcoming months.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is extending its gains for the third successive session and trading higher at around 99.10 during the Asian hours on Thursday. The Greenback continues to gain ground following the US Federal Reserve's (Fed) decision to keep the policy rate unchanged at the 4.25%-4.50% range at its June meeting on Wednesday, as widely expected. The Federal Open Market Committee (FOMC) still sees around 50 basis points of interest rate cuts through the end of 2025.
Fed Chair Jerome Powell signaled, in a post-meeting press conference, that inflation remains somewhat above goal and could rise in the future, citing the impact of US President Donald Trump's tariffs. Powell supported the current policy stance that leaves the central bank well-positioned. He warned that ongoing policy uncertainty will keep the Fed in a rate-hold stance, and any rate cuts will be contingent on further improvement in labor and inflation data.
The US Dollar also draws support from heightened safe-haven demand amid ongoing Middle East tensions. Bloomberg, citing unnamed sources, reported that "US officials prepare for possible Iran strike in coming days." "The US plans for any Iran attack continue to evolve." Moreover, the Wall Street Journal, referencing individuals familiar with discussions, stated that US President Trump said late Tuesday that he approved of attack plans for Iran, but held it to see if Tehran would abandon its nuclear program.
President Trump criticized Iran "made a mistake", responding to the Supreme Leader Ayatollah Ali Khamenei's declaration that "the Iranian nation will not surrender" and warned of "irreparable damage" if the United States (US) directly joins the Israel-Iran conflict.
US Dollar FAQs
The US Dollar (USD) is the official currency of the United States of America, and the 'de facto' currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world's reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away.
The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed's 2% target, the Fed will raise rates, which helps the USD value. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates, which weighs on the Greenback.
In extreme situations, the Federal Reserve can also print more Dollars and enact quantitative easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used when credit has dried up because banks will not lend to each other (out of the fear of counterparty default). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It was the Fed's weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy US government bonds predominantly from financial institutions. QE usually leads to a weaker US Dollar.
Quantitative tightening (QT) is the reverse process whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing in new purchases. It is usually positive for the US Dollar.
Last updated
: 2025.06.19
Related articles
SNB's Tschudin: Economic situation for Switzerland has become considerably more uncertain
7 minutes agoSNB's Martin: Interest rate environment in Switzerland has started to weigh on banks' profitability
9 minutes agoSNB's Schlegel: With today's cut we are countering lower inflationary pressure
13 minutes agoEUR/CHF pulls back below 0.9400 despite the SNB's rate cut
24 minutes agoUSD/CHF steadies around 0.8200 after SNB announces a quarter basis point rate cut
28 minutes agoLagarde speech: Greater regional trade can offset global losses
31 minutes ago
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
SNB's Tschudin: Economic situation for Switzerland has become considerably more uncertain
Swiss National Bank (SNB) governing board member Petra Tschudin is addressing the post-policy meeting press conference, explaining the decision behind the 25 basis points (bps) interest rate cut to 0%.
New
2025.06.19 17:09SNB's Martin: Interest rate environment in Switzerland has started to weigh on banks' profitability
Swiss National Bank (SNB) Vice Chairman Antoine Martin is speaking at the post-policy meeting press conference, explaining the decision behind the 25 basis points (bps) interest rate cut to 0%.
New
2025.06.19 17:06SNB's Schlegel: With today's cut we are countering lower inflationary pressure
Swiss National Bank (SNB) Chairman Martin Schlegel is addressing the post-meeting press conference, explaining the decision behind the 25 basis points (bps) interest rate cut to 0%.
New
2025.06.19 17:03EUR/CHF pulls back below 0.9400 despite the SNB's rate cut
Buy the rumour, sell the fact for the EUR/CHF on Wednesday, as the pair has reacted lower to the Swiss National Bank's decision to cut its benchmark rate by 25 basis points, to 0% after its monetary policy meeting.The EUR/CHF has pulled back from the 0.9420 area to levels right below the 0.9400 leve
New
2025.06.19 16:52USD/CHF steadies around 0.8200 after SNB announces a quarter basis point rate cut
USD/CHF continues its winning streak for the fifth consecutive session, trading around 0.8200 during the European hours on Thursday. The pair holds gains following the release of the interest rate decision by the Swiss National Bank (SNB).
New
2025.06.19 16:48Lagarde speech: Greater regional trade can offset global losses
European Central Bank (ECB) President Christine Lagarde is delivering a keynote address at the 9th Annual Research Conference, titled Economic and Financial Integration in a Stormy and Fragmenting World, on Thursday.
New
2025.06.19 16:44Forex Today: US Dollar holds ground in Fed aftermath, eyes on BoE
Here is what you need to know on Thursday, June 19:
New
2025.06.19 16:42SNB lowers Sight Deposit Rate by 25 bps to 0% as expected
The Swiss National Bank (SNB) announced on Thursday that it cut the benchmark Sight Deposit Rate by 25 basis points (bps) to 0% from 0.25% following its monetary policy assessment for the June quarter.
New
2025.06.19 16:30Pound Sterling faces selling pressure ahead of BoE's monetary policy announcement
The Pound Sterling (GBP) trades lower against its major peers, except antipodeans, on Thursday. The British currency faces selling pressure ahead of the Bank of England's (BoE) monetary policy announcement due at 11:00 GMT.
New
2025.06.19 16:24WTI retakes $74.00; remains close to multi-month top as Iran-Israel conflict fuels supply concerns
West Texas Intermediate (WTI) US Crude Oil prices regain positive traction on Thursday amid concerns that a broader conflict in the Middle East could influence global supply.
New
2025.06.19 16:22Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
