The dollar index is down 0.12% today due to pressure from the yen’s rally. Concerns over Fed independence persist after Powell’s remarks. Positive US economic data limited dollar losses. Fed officials’ comments and stock market weakness also influenced the dollar’s performance.

US economic data for November exceeded expectations: PPI final demand rose 3.0% y/y, retail sales increased 0.6% m/m, and existing home sales surged by 5.1% m/m to a 2.75-year high. These figures contributed to the dollar’s strength despite other factors.

Minneapolis Fed President sees no need for rate cuts this month, further supporting the dollar. Market expectations suggest a 5% chance of a rate cut by the FOMC later this month. However, the dollar continues to face underlying weakness.

The euro gained ground against the dollar today, with ECB Vice President’s comments on global uncertainty’s impact on the Eurozone economy. Swap rates imply a 1% chance of an ECB rate hike in February. The yen rebounded against the dollar driven by hawkish Japanese officials’ remarks.

Concerns about Japan’s economic outlook due to potential elections and China-Japan tensions weigh on the yen. The yen’s initial dip was followed by gains on hawkish comments from officials. The markets see a 0% chance of a BOJ rate hike at the upcoming meeting.

Precious metals rose today amid rising tensions in Iran and US personnel advised to leave a key air base in Qatar. Gold and silver prices reached new highs. Support also came from concerns over Fed independence and Trump’s bond-buying directive.

Safe-haven demand for precious metals persists amid geopolitical risks and Fed policy uncertainty. Central bank and fund demand for gold and silver remain strong. The market is closely watching developments in the financial sector and geopolitical landscape for further price movements.

Read more at Yahoo Finance: Dollar Slips as the Yen Recovers and Precious Metals Soar on Geopolitical Risks