Dollar Weakens, Yen Gains — Gold Breaks $5,000!
The US dollar weakened, immediately shaking the market: the yen surged, US stock index futures fell, while gold broke through $5,000 per ounce for the first time.
The greenback fell against all Group-of-10 currencies, while the yen briefly surged as much as 1% to 154.22 per dollar. This movement came after traders reported on Friday that the Federal Reserve Bank of New York was contacting financial institutions to inquire about the yen exchange rate, and on Sunday, Japanese Prime Minister Sanae Takaichi said the government was ready to take action.
The Bloomberg Dollar Index fell to its lowest level since September. At the same time, S&P 500 futures fell 0.5%, reflecting a decline in appetite for US assets.
Other concerns also mounted: the potential for a US government shutdown loomed again, while President Donald Trump threatened 100% tariffs on Canadian imports. On Wall Street, the New York Fed's "rate check" move was read as a signal that the central bank is ready to assist Japan if necessary to intervene in the foreign exchange market to strengthen the yen.
The dollar also reportedly fell the most since May last week, fueled by unpredictable US policy, US-European tariff tensions, and concerns about the Fed's independence. Vaibhav Loomba of the Klay Group even predicted the US Dollar Index could fall 3%–5% by the end of June, with tariffs a key factor, and the independence issue, which he believes will not disappear until mid-May.
In Asia, the impact was felt broadly: the Malaysian ringgit strengthened to its strongest position against the dollar since 2018, while the South Korean won rose 1.2%. US bonds also strengthened—the 10-year US Treasury yield fell 1 basis point to 4.21%—as the market awaited the Fed's decision, which is expected to hold interest rates steady on Wednesday, plus reports from major players like Microsoft and Tesla. Amidst all this, gold continued to surge above $5,000, and silver even briefly broke through $100 per ounce last week. (asd)
Source: Newsmaker.id
