The dollar index (DXY) fell by 0.20% on Friday, remaining above Thursday’s 1.5-week low. This decline followed President Trump’s nomination of Stephen Miran, seen as dovish and supportive of lower interest rates, to temporarily replace Fed Governor Adrianna Kugler.
Additionally, President Trump announced a 100% tariff on semiconductor imports and plans to double tariffs on US imports from India. If implemented, the average US tariff is projected to rise to 15.2%. Federal funds futures indicate a 90% chance of a 25 basis point rate cut at the upcoming Federal Open Market Committee meeting on September 16-17.
In commodities, gold prices rose 1.09% to a 3.5-month high, supported by a weaker dollar and geopolitical risks, while silver increased by 0.65%. China’s central bank purchased 60,000 troy ounces of gold in July, its ninth consecutive month of purchases, bolstering market confidence.
