Dollar Slides as Global Demand Wavers

The U.S. Dollar Index (DXY) fell 0.80% to 96.896, retreating from yesterday’s close of 97.681. Markets reacted to signs that foreign demand for dollar-denominated assets may be cooling. Geopolitical tensions, shifting capital flows, and firmer rival currencies weighed on the greenback, sending it lower over the session.


Safe-Haven Status Faces a Reality Check


Concerns about overseas investors trimming exposure to U.S. assets sparked a reassessment of the dollar’s role as a safe haven. The euro (EUR/USD) gained 0.55% to 1.112, while the Japanese yen (USD/JPY) strengthened 0.32% to 144.25, reflecting selective global capital flows rather than automatic dollar inflows.


Precious Metals Steal the Spotlight

As the dollar softened, precious metals surged. Gold jumped 1.2% to $2,038 per ounce, and silver climbed 2.1% to $27.85 per ounce, as investors sought tangible hedges amid uncertainty around trade policy, geopolitics, and U.S. fiscal outlooks. The move signals a rotation from paper assets into safe, physical stores of value.


Major Currencies Find Their Footing

Currency markets showed divergence:
Euro (EUR/USD): +0.55% to 1.112
Japanese yen (USD/JPY): -0.32% to 144.25
British pound (GBP/USD): +0.41% to 1.271


Policymakers’ statements and improving regional sentiment supported these gains, highlighting shifts in global currency dynamics.


A Fragile Global Balance

Overall, the session underscored a delicate balance: global confidence remains uneven, capital flows are adjusting, and traditional relationships between the dollar, major currencies, and safe-haven assets are being tested. The U.S. Dollar Index has dropped 1.39% year-to-date and 10.05% over the past year, emphasizing the persistent pressure on the greenback.