The dollar index rose by 0.37% to a 3-month high, boosted by a slump in equity markets. Bearish factors include lower T-note yields and weaker US Oct Wards total vehicle sales. Market odds are 69% for a 25 bp rate cut by the FOMC in December.

EUR/USD fell by 0.36% to a 3-month low due to the dollar’s strength and ECB comments. The euro benefits from ECB rate stability while the Fed is expected to cut rates. ECB members’ comments highlighted downside risks to Eurozone growth.

USD/JPY fell by 0.36% as the yen recovered from an 8.5-month low, supported by Japanese intervention signals and higher JGB yields. The yen has been weak due to political uncertainty and a potential BOJ rate hike. Markets anticipate a 50% chance of a hike in December.

December COMEX gold and silver prices dropped on Tuesday amid a stronger dollar and weak demand for industrial metals. Precious metals have safe-haven support from ongoing US political and economic uncertainties, geopolitical risks, and central bank buying. Long liquidation pressures have weighed on prices since mid-October.

Read more at Yahoo Finance: Dollar Rallies as Stocks Retreat