Currency Market Update: May 21st 2026 - US Dollar Strengthens as Fed Hawkishness and Middle East Tensions Weigh on Markets

Currency Market UpdateThe US Dollar has steadied overnight after yesterday's Federal Reserve meeting minutes showed that more policymakers were in favour of interest rate hikes. 

This hawkish outlook when coupled with further uncertainty in the Middle East conflict has led to further losses in other currencies.

April's meeting minutes showed an increase in the number of officials leaning towards interest rate hikes as inflation continues to remain stubborn.

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