USD Steady as Fed Holds Rates Unchanged Amid Strong Equity Rally

The US dollar traded in a neutral to slightly softer tone this week as the Federal Reserve maintained its policy rate unchanged, in line with market expectations. US equity markets closed higher, buoyed by a heavy week of corporate earnings that largely exceeded forecasts, reducing safe-haven demand for the greenback. The Fed's decision to hold rates steady signals a cautious approach, with policymakers likely awaiting further clarity on inflation and labor market trends before committing to any rate adjustments. The DXY dollar index hovered near weekly support levels as risk-on sentiment favored higher-yielding and equity-linked currencies. EUR/USD and GBP/USD saw modest upside pressure as traders digested the dovish hold, while USD/JPY remained range-bound amid mixed signals. Near-term, traders should watch upcoming US employment data and ISM reports for directional cues. Key support for the dollar index sits near 104.50, with resistance around 105.20. The unchanged rate decision keeps the dollar vulnerable to further softness if risk appetite persists into the coming week.