The dollar index fell as the yen surged on intervention threats, while precious metals climbed on store-of-value demand despite rising global bond yields.
Yen strengthened after US Treasury Secretary Bessent dared traders to test his resolve on supporting the yen, suggesting potential US-Japan intervention.
The dollar index dropped to a 2.5-week low ahead of the Treasury's buyback operation and strength in the yen.
Euro rose on dollar weakness and expectations of a 25bp ECB rate hike.
Gold rose on a weaker dollar and concern about dollar debasement from the Treasury's buyback, despite higher bond yields.
Silver climbed to a 1.5-week high, supported by dollar weakness and store-of-value demand.
WTI crude oil rallied to a 3.25-month high, boosting inflation expectations.
The US dollar index retreated to a 2.5-week low as Treasury Secretary Bessent signaled potential intervention to support the yen. Meanwhile, WTI crude oil rallied to a 3.25-month high, fueling inflation concerns that may influence upcoming Federal Reserve and ECB policy decisions.
The yen is strengthening due to hawkish rhetoric from US Treasury Secretary Bessent regarding potential currency intervention and speculation that Japan's GPIF may increase its allocation to domestic government bonds.