The dollar index fell to a 2-week low on Thursday, down by -0.33%, as speculation about delayed economic reports showing a weakening US economy led to expectations of further Fed rate cuts. Fed officials favored keeping rates steady, boosting liquidity demand. Markets priced in a 51% chance of a 25 bp rate cut in December.

EUR/USD rose to a 2-week high, up by +0.37%, due to a weaker dollar and central bank divergence. However, Eurozone industrial production was weaker than expected. Swaps priced in a 3% chance of a rate cut by the ECB in December.

USD/JPY fell by -0.19% as the yen recovered from a 9.25-month low against the dollar. Stronger-than-expected Japanese producer prices supported the yen. Comments from Japanese Finance Minister Katayama signaling possible intervention also boosted the yen.

Precious metals initially rose on Thursday but turned lower after hawkish Fed comments. The chance of a Fed rate cut in December decreased to 51%, impacting precious metals prices. Central bank demand for gold remains strong, with China’s PBOC and global central banks increasing their gold reserves.

Read more at Yahoo Finance: Dollar Falls as the US Government Reopens