Market News
Dollar recovers as central bank decisions loom, markets turn risk-off - REUTERS
By Gregor Stuart Hunter
SINGAPORE, Feb 5 (Reuters) - The dollar climbed to a two-week high on Thursday as fresh volatility gripped stocks and precious metals, while traders counted down to rate decisions from the European Central Bank and the Bank of England. The U.S. dollar index, which measures the greenback's strength against a basket of six currencies, was last up 0.1% at 97.762, extending gains into a second day.
"There’s a bit of risk aversion coming through," said Sim Moh Siong, currency strategist at OCBC in Singapore. "When there's risk aversion, the dollar tends to strengthen."
The dollar has regained some strength this week and stocks turned risk-off as financial markets assess U.S. corporate earnings season, now halfway complete.
Gold and silver, which have become more volatile recently as a result of leveraged buying and speculative flows, were rocked by a fresh selloff on Thursday, which saw silver falling as much as 16.6% to a low of $73.41.
The Nasdaq Composite has fallen 2.9% during the past two days, its biggest slide since October, with volatility triggered by market bellwethers including Google parent Alphabet, which reported aggressive spending plans on Wednesday, and a rout in software stocks as they adapt to a new era of generative AI.
