The Australian dollar rose above $0.70, but remained near two-month lows as the US dollar jumped following the Federal Reserve’s interest rate decision. While the Fed left its policy rate unchanged, half of FOMC members expect a hike later this year amid growing inflation concerns. Meanwhile, new Fed Chair Kevin Warsh shifted away from forward guidance in his debut communication, emphasizing a more inflation-focused policy stance. In Australia, the Reserve Bank signaled further tightening after holding rates steady. Governor Michele Bullock emphasized that inflation remains too high and reiterated that further rate increases cannot be ruled out. While markets increasingly suspect that the tightening cycle is over, the RBA’s hawkish tone has kept a roughly 50% chance of one final hike this year priced in. Elsewhere, the US and Iran digitally signed their interim peace agreement, although it remains uncertain whether Iran has already begun steps to fully reopen the Strait of Hormuz.