TOKYO/LONDON—The U.S. dollar steadied on Thursday after strong U.S. banking results firmed up expectations that the Federal Reserve will keep monetary policy tight for a while longer.
Morgan Stanley reported first quarter profit on Wednesday that beat expectations, adding to rosy results from major U.S. lenders that have calmed fears of a widening crisis after the failure of Silicon Valley Bank and Signature Bank last month.
The dollar index, which tracks the currency against a basket of its peers, edged 0.07 percent lower to 101.92 after sliding on Friday to its lowest level since early February.
“The banking results continue to show that the U.S. bank funding situation is stabilizing,” said Bank of Singapore currency strategist Sim Moh Siong….