US Dollar Slides to Multi-Week Low
The US Dollar Index extended its decline for a third day, trading near a multi-week low as it weakened against a host of major currencies. The dollar lost ground to the Euro, British Pound, Canadian Dollar, and Swiss Franc, driven by softer US economic data and fading expectations for Federal Reserve rate hikes, while a US-backed intervention also pushed the Japanese Yen higher against the greenback.
Silver Price Surges Amid Favorable Conditions
Silver prices continued a multi-day rally, climbing above the $62.00 per ounce mark during Asian trading. Market commentary linked the precious metal's strength to the broadly weaker US Dollar and sentiment around easing inflation concerns.
Easing Tensions and Inflation Signals Weigh on Sentiment
Factors contributing to the shift in market sentiment include a reported agreement between Iran and Oman regarding the Strait of Hormuz, which helped keep oil prices subdued and reduced safe-haven demand. Separately, a Federal Reserve official noted that the inflationary impact of tariffs may be fading, while the US administration reportedly refunded $100 billion in tariff payments to businesses.
Asia-Pacific Currencies Show Muted Reaction to Data
In the Asia-Pacific region, Australia's trade balance unexpectedly flipped to a significant surplus in the latest report. Despite the positive data, the Australian Dollar's reaction was muted, while China's central bank set a slightly weaker daily reference rate for the yuan.
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