Dollar on the defensive ahead of first Fed decision under Warsh (opens original article in a new tab)

The dollar weakened ahead of the Fed's first decision under Warsh, with market focus on potential policy shifts and a U.S.-Iran peace deal influencing currency movements.

• The dollar eased ahead of the Fed's first decision under Warsh, with optimism over a U.S.-Iran peace deal affecting risk appetite.
• The yen weakened against the dollar, with Japanese authorities possibly intervening to support the currency after a BOJ rate hike.
• The Fed is expected to maintain rates but may signal a shift in policy bias as officials become more hawkish on inflation.