The US dollar weakened in today's trading, after strengthening in previous sessions, supported by rising US bond yields. The weakening greenback has caused investors to reduce their safe-haven dollar positions and gradually shift to other assets offering more attractive yields. Market sentiment is also influenced by speculation that the Fed could take greater policy easing steps if future economic data shows a clearer slowdown.

The decline in the dollar index provides breathing space for other currencies, particularly in Asia, which have strengthened or at least stabilized compared to the previous session. This condition has also boosted risk appetite, with some market players returning to emerging market stocks and bonds. Expectations that the Fed's interest rate peak has passed further reinforces the view that the "super strong dollar" phase is fading.

In commodity markets, a weaker dollar is positive news for gold, silver, and oil. Gold and silver prices tend to strengthen more easily because these precious metals become relatively cheaper for buyers outside the US. Crude oil also has the potential to benefit, especially if the dollar's weakness is interpreted as a signal of a sustained global demand outlook. However, market participants remain cautious, as any new comments from Fed officials or subsequent major economic data could quickly change the dollar's direction. (az)

Source: Newsmaker.id