The dollar index is up by +0.07%, hitting a 2.5-week high due to stock slump and President Trump’s 30% tariff threat on EU and Mexico goods. Fed official Beth Hammack wants to see inflation drop before supporting rate cuts. Markets see a 7% chance of July rate cut. EUR/USD lower on Trump’s tariff threat. Swaps price in 2% chance of ECB rate cut.

USD/JPY down by -0.04% as the yen strengthens on higher Japanese bond yields. BOJ may raise inflation forecasts. Yen worries due to upcoming Japanese election. Japan’s May economic data mixed, with tertiary index rising, core machine orders falling, and industrial production revised downward.

Gold and silver prices drop as the dollar index climbs to a 2.5-week high. Global bond yield increase also affects precious metals. President Trump’s tariff threats boost safe-haven demand but stock weakness and rising inflation expectations support gold. BOJ’s potential inflation forecast hike at July meeting weighs on precious metals.

Read more at Yahoo Finance: Dollar Supported by Latest US Tariff Threats