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Global markets pushed the U.S. dollar to near 1½-week highs this week as a renewed stand-off between Iran and the United States tightened energy markets and kept central banks in a watch-and-wait posture.
Reuters reporting (April 21-23) said Iran seized two ships in the Strait of Hormuz, lifting oil above $100 a barrel and sustaining safe-haven demand for the greenback.
The dollar index hovered around the high 98s while the euro traded near $1.17 and the yen lingered close to 159ā160 per dollar, levels that market participants view as a possible intervention line for Japanese authorities.
Economists and traders said the conflict and resulting energy shock have reduced odds of near-term rate cuts: a Reuters poll showed the Federal Reserve unlikely to cut rates for at least six months, and markets expect major central banks to largely sit tight at upcoming meetings.
The evolving ceasefire talks remain fragile, and investors are reluctant to take strong directional bets amid mixed headlines on negotiations and persistent downside risks to growth from higher fuel costs.








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