The dollar index (DXY00) fell by 0.09% today, influenced by the strength of the Chinese yuan, which reached a 2.5-year high against the dollar. Richmond Fed President Tom Barkin noted an improving U.S. economic outlook, though inflation remains above the Federal Reserve’s target. The partial U.S. government shutdown is currently in its fourth day, but a spending bill vote in the House is anticipated later today.
President Trump announced a tentative deal with Senate Democrats aimed at averting the shutdown, which would provide temporary funding for the Homeland Security Department. The dollar, which experienced a four-year low last week, faces substantial pressure from foreign capital outflows amid a growing budget deficit and evolving political divisions.
In commodity markets, April COMEX gold surged by 6.24% to $290.20, while March COMEX silver rose by 13.64% to $10.506, driven by increased safe-haven demand and geopolitical uncertainties. The People’s Bank of China reported an increase of 30,000 ounces in its gold reserves to 74.15 million troy ounces in December, marking the fourteenth consecutive month of growth.
