USD Strengthens as Hawkish Fed Minutes Weigh on EUR/USD and Risk Assets

The US dollar extended gains broadly as markets digested hawkish Federal Reserve minutes alongside developments in the tech sector, with OpenAI reportedly nearing a historic $100 billion funding round. Fed policymakers signaled they are in no hurry to cut interest rates, with some members open to rate hikes if inflation remains persistent. This stance pushed US Treasury yields higher, supporting the dollar against major counterparts. EUR/USD and other risk-sensitive pairs came under pressure as the widening rate differential favored the greenback. The hawkish Fed posture contrasts with more dovish expectations priced into European and Asian central banks, reinforcing dollar strength across the board. While the OpenAI funding milestone highlights ongoing confidence in US tech innovation, it also raises questions about capital flows and their indirect impact on dollar demand. Traders should watch upcoming inflation data closely, as any upside surprise could further cement the Fed's hawkish stance and drive additional USD appreciation in the near term.