Geopolitical Tensions Boost Oil Prices

Renewed military action in the Middle East, including US strikes against Iran aimed at keeping the Strait of Hormuz open, has increased geopolitical risk and contributed to market caution. The escalating conflict has directly impacted energy markets, with West Texas Intermediate (WTI) crude oil prices rising to near $79.50 per barrel. These developments have reignited concerns about energy-driven inflation and potential shipping disruptions.

US Dollar Weakens on Easing Fed Hike Bets

The US Dollar Index remained near a multi-week low as signs of cooling inflation in the US have tempered expectations for further interest rate hikes by the Federal Reserve. The greenback struggled for direction, consolidating around the 100.50 level after recent losses. This broader dollar weakness was a significant theme across currency markets, impacting several major pairs.

Silver Prices Decline Amid Market Crosscurrents

Silver prices extended losses for a second day, falling to around $57.00 per troy ounce during Asian trading. The non-yielding metal faced pressure from the combination of rising Middle East tensions and the resulting surge in oil prices, which has sparked fresh inflation concerns. This environment presented challenges for silver's valuation.

Asian Central Banks Signal Policy Shifts

Several key Asian central banks took notable actions, influencing regional currency movements. The Bank of Korea delivered its first interest rate hike in over three years to combat inflation, causing the South Korean Won to strengthen. Meanwhile, Japanese authorities signaled a readiness to intervene to support the Yen, and China's central bank set a reference rate that supported an upside bias for the Yuan against the US dollar.