US Dollar Recovers as Risk Appetite Declines, FOMC Hawkish

The US Dollar has reversed its recent two-day decline, recouping losses as risk appetite wanes globally. The currency's recovery is attributed to a more hawkish tone from the Federal Open Market Committee (FOMC).

Policymakers are prepared to raise interest rates further if inflation does not continue to move toward the 2% target. This stance has strengthened the dollar, as markets adjust expectations for tighter monetary policy.