The US Federal Reserve is scheduled to announce its interest rate decision on Wednesday, with markets closely watching amid rising oil prices and ongoing geopolitical tensions, according to FX Street.
Renewed hostilities between Iran and the US have pushed Brent crude prices up by more than 3%, reports BNY, adding pressure to global markets. Meanwhile, the Canadian Dollar has modestly outperformed the US Dollar, with USD/CAD trading around 1.4093 within a week-old range, FX Street noted.
The British Pound has weakened against the US Dollar, dropping below 1.3300 and on track to record a nearly 1.20% decline over the last two weeks, FX Street added. Japanese investors will be monitoring these developments closely as fluctuations in oil prices and US monetary policy continue to influence currency and equity markets globally.