18.03.202618:32:11UTC+00Dollar Index Strengthens, Fed and Oil Eyed

The dollar index climbed above 100 on Wednesday as traders digested the Federal Reserve’s latest monetary policy decision. As widely anticipated, the Fed left the federal funds rate unchanged, while emphasizing that the economic fallout from the war with Iran remains uncertain and highlighting that upside risks to inflation are still elevated.

Despite these concerns, the central bank maintained its projection of one interest rate cut this year and another in 2027, consistent with its December forecast. The timing of these moves remains unclear, with current market pricing pointing to a potential cut in either December or January.

At the same time, market participants are closely tracking developments in the conflict with Iran. Ongoing strikes and continued volatility in oil prices—marked by sharp swings between gains and losses—are adding to uncertainty. Seeking to support stability in energy markets, President Trump issued a temporary waiver of the Jones Act, saying the move “will allow vital resources like oil, natural gas, fertilizer, and coal to flow freely to US ports for sixty days.”