The US currency continued its moderate growth on Wednesday, adding 0.2% and reaching the level of 97.665 according to the dollar index, which measures its value relative to six key world currencies. Nevertheless, the dollar remains near multi-week lows, under pressure amid the fragile truce between Israel and Iran, which has reduced demand for defensive assets. Earlier, the dollar strengthened due to increased geopolitical tensions after the US strikes on Iran. However, Donald Trump's announcement of a cease-fire changed the mood of the markets. Despite accusations of violating the truce, the parties stopped air strikes, which gives hope for its preservation. Additional attention of investors is attracted by the speeches of Fed Chairman Jerome Powell, who made it clear that a rapid rate cut is unlikely, despite Trump's pressure. Powell noted that the inflation risks caused by tariffs complicate the Fed's actions. Analysts warn that excessive easing of the Fed's policy could undermine confidence in its independence, leading to a weakening of the dollar.
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