Major Currencies Tumble Amid Rising Dollar

Global currencies dropped as the U.S. dollar strengthened following the detention of Turkey's President Erdogan's rival. The Turkish lira hit a record low, prompting a shift to safe-haven assets. Attention now turns to the Federal Reserve's anticipated decision to hold interest rates steady, influencing global markets.

Global currencies experienced significant declines on Wednesday as the U.S. dollar soared, spurred by the detention of President Erdogan's main political opponent in Turkey. This geopolitical move unsettled investors and sent the Turkish lira to unprecedented lows, prompting a noticeable shift towards safer assets.

The ensuing drop in Turkey's lira reverberated through financial markets, impacting major currencies and spurring capital flows into the dollar. The euro, yen, and other currencies saw declines, while investors kept a close eye on the Federal Reserve's impending decision regarding interest rates.

Market analysts, including Michael Pfister from Commerzbank, noted the unusual market response to developments in Turkey, with investors adopting a risk-off stance. Meanwhile, the Federal Reserve's decision, expected later Wednesday, is crucial as markets await its interpretation of U.S. economic policies under President Trump and potential rate outlooks.

(With inputs from agencies.)