The latest indication was obtained by the market on Tuesday yesterday from the Federal Reserve (Fed) regarding the setting of their monetary policy which has been the subject of heated debate in recent months.
Most recently, Fed Chairman Jerome Powell stated yesterday that the central bank may need to keep interest rates high for a longer period with the objective of lowering inflation.
This did not surprise investors because there had been expectations for interest rate cuts to be postponed following the economic data of the United States (US) presented with encouraging readings.
Powell does not see the latest data giving confidence for a shift in loose monetary policy to be made in the near term.
Thus, this situation is seen to continue to support the US dollar to remain strong in the market for now.
In addition, the geopolitical tension that continues to increase is also an additional factor to the strengthening of the US dollar as a safe-haven currency.
Investors are watching Israel's actions after the Iranian attack was launched last weekend.
The majority expected Israel not to remain silent and to retaliate against Iran again.
Market sentiment that remains risky throughout the week is seen to favor currency trading and safe-haven assets.
The reading of China's economic data published in the Asian session yesterday also caused concern when industrial production and retail sales recorded figures lower than forecast.
Also receiving a positive impact is gold which is a safe investment option with the price showing a moderate increase from the beginning of the week approaching the level of $2,400 yesterday.
