23.07.202601:32:53UTC+00US Dollar Edges Lower

The US dollar slipped to around 101 on Thursday, extending modest losses from the previous session as traders balanced renewed inflation risks from rising energy prices against signs of a softer US economy while looking for clearer signals on the Federal Reserve’s rate path. Markets broadly expect the Fed to keep rates unchanged at next week’s meeting, but uncertainty over the longer-term policy trajectory has grown amid limited guidance from the new Chair, Kevin Warsh. At the same time, safe-haven buying helped cap the dollar’s decline as tensions in the Middle East remained elevated. President Donald Trump warned that the US would strike Iranian infrastructure if American or allied vessels were attacked in the Strait of Hormuz, while Tehran threatened retaliation against regional energy and infrastructure assets. Separately, attacks on tankers in the Red Sea—the first since late February—intensified fears of a wider regional escalation and potential disruptions to global trade flows.