The dollar index (DXY00) fell by 0.12% today after reaching a one-week high, influenced by political risks and concerns over Federal Reserve independence following President Trump’s call for Fed Governor Lisa Cook to resign amid allegations of mortgage fraud. The dollar’s decline was exacerbated by speculation that a stronger-than-expected July PPI report could prevent a 25 basis point rate cut by the Fed at the upcoming September meeting, with current expectations for such a cut decreasing to 84% from 93%.
The euro (EUR/USD) increased by 0.09% after initially dropping due to comments from ECB President Christine Lagarde regarding slower growth in the Eurozone. In the currency market, the Japanese yen (USD/JPY) saw a decline of 0.35%, bolstered by rising Japanese government bond yields despite a mixed economic report showing a 2.6% year-on-year drop in July exports, marking the largest decline in almost 4.5 years.
In precious metals, December gold rose by $27.30 (+0.81%) and September silver increased by $0.378 (+1.01%), recovering from early losses as safe-haven demand surged amid U.S. political turbulence and concerns over the Fed’s independence. Gold ETF holdings reached a two-year high last Friday, while silver holdings hit a three-year high on Tuesday, contributing further to price support.
