Japanese Intervention Weakens US Dollar

Japanese authorities intervened in the foreign exchange market, causing a sharp decline in the USD/JPY pair and a broader weakening of the US Dollar Index. The move provided a lift to other major currencies, with the Australian Dollar and British Pound both posting significant gains against the greenback. The intervention came on a day when data showed the US economy grew at a slower-than-expected pace in the first quarter.

Gold Surges on Safe-Haven Demand

Gold prices advanced significantly, climbing to near $4,630 as geopolitical concerns spurred safe-haven buying. The rally was attributed to renewed tensions in the Middle East, which prompted traders to seek the relative safety of the precious metal.

Economic Signals from Asia Remain Mixed

Economic data across Asia presented a varied picture, with China's manufacturing outlook appearing bright while its domestic demand softened. In contrast, Taiwan posted strong GDP growth driven by robust exports, while Thailand's central bank is expected to hold rates amid rising stagflation risks. Inflationary pressures in Tokyo, Japan, continued to trend below the central bank's target despite a slight monthly increase.