US Dollar Strengthens on Geopolitical Tensions

The US Dollar index climbed to a six-week high as investors flocked to the safe-haven currency amid heightened geopolitical risks in the Middle East. This risk-averse market sentiment exerted downward pressure on a range of other currencies, including the Euro, British Pound, and the Australian and Canadian dollars.

Hawkish Fed Outlook Adds to Dollar Support

Market expectations for a prolonged period of high interest rates from the US Federal Reserve also contributed to the dollar's strength, with traders anticipating the release of the latest FOMC minutes. Comments from one Fed official suggesting that rate hikes are a "healthy" consideration further reinforced a hawkish policy outlook.

China's Central Bank Maintains Lending Rates

The People’s Bank of China (PBOC) announced its decision to keep its key lending benchmarks, the one-year and five-year Loan Prime Rates (LPRs), unchanged for the twelfth consecutive month. The central bank also set a slightly weaker midpoint for the yuan against the US dollar in its daily reference rate fixing.

Silver Prices Consolidate Near $74

In precious metals trading, silver prices steadied around the $74.00 per ounce level during the Asian session. The metal faced some selling pressure after a modest move toward the $75.00 mark, leading to a retreat to the lower end of its daily trading range.