Central banks worldwide are maintaining interest rates amid inflation concerns, leading to a 1% drop in the US dollar index. This week, the Federal Reserve, Bank of Canada, Bank of Japan, Bank of England, European Central Bank, and central banks of Switzerland and Sweden all opted to keep rates unchanged. The Brazilian central bank made a smaller-than-expected rate cut of 25 basis points to 14.75%. The coordinated stance reflects heightened vigilance over potential inflation driven by rising energy prices. Haru Chanana of Saxo Bank noted that geopolitical tensions, particularly involving Iran, are exacerbating market fears of stagflation, impacting global energy systems and economic stability.