The dollar index held above the 100 mark on Thursday after jumping nearly 1% in the previous session, as the Federal Reserve left interest rates unchanged but signaled increasing support for rate hikes later this year. Half of FOMC members now project at least one rate increase in 2026, while the central bank sharply raised its inflation forecasts amid the economic impact of the conflict in the Middle East. Meanwhile, new Fed Chair Kevin Warsh declined to offer guidance on the next policy move but stressed that inflation has remained above the Fed’s 2% target for several years and reaffirmed the central bank’s commitment to restoring price stability. On the geopolitical front, President Donald Trump signed an interim agreement to end the war with Iran and reopen the Strait of Hormuz, though it remains unclear whether Iran has already begun implementing measures to fully reopen the critical shipping route.