The dollar index rose by +0.24% on Wednesday, boosted by weakness in GBP/USD and the yen, along with a stock market slump. Fed Governor Waller’s dovish comments tempered the dollar’s gains. The Fed’s liquidity boost and potential dovish Fed Chair appointment by President Trump also weigh on the dollar.

The euro fell by -0.04% against the dollar on Wednesday due to a stronger dollar, dovish Eurozone economic news, and a decline in the German Dec IFO business conditions survey. The euro has support from divergent central bank policies, with the Fed expected to cut rates while the ECB is done cutting rates.

USD/JPY rose by +0.63% on Wednesday as the yen weakened against the dollar. Concerns about Japanese fiscal policy, strong U.S. dollar, and positive economic news in Japan contributed to the yen’s retreat. Expectations of a BOJ rate hike also supported the yen.

Precious metals surged on Wednesday, with gold and silver prices rising sharply. Safe-haven demand increased due to escalating tensions in Venezuela and dovish comments from Fed Governor Waller. Central bank demand for gold remains strong, while silver has support from tight Chinese inventories.

Long liquidation pressures have weighed on precious metals prices since mid-October, but fund demand for silver has rebounded. ETF holdings have fallen, but silver ETFs show increased long holdings. Central bank demand for gold continues to support prices globally.

Read more at Yahoo Finance: Dollar Pushes Higher as Stocks Weaken