Global Market Jitters as Middle East Tensions and Central Bank Decisions Loom

The dollar strengthened slightly while global currencies held tight as tensions in the Middle East intensified and investors awaited central bank decisions. The Bank of Japan is expected to maintain interest rates, while the U.S. braces for potential Fed policy guidance amid ongoing geopolitical unrest in the Middle East.

The dollar saw a modest rise on Tuesday as most currencies remained stable amid heightened tensions in the Middle East and anticipation over upcoming central bank decisions.

The Bank of Japan is set to conclude its two-day monetary policy meeting, expected to maintain steady interest rates. Meanwhile, the yen showed slight improvement against the dollar.

Middle East unrest influenced market dynamics, with the risk-sensitive Australian and New Zealand dollars experiencing declines. Investors also eye the Federal Reserve's upcoming decisions for future market direction.

(With inputs from agencies.)