Why is the US dollar falling against other currencies?

The US dollar has fallen due to speculation that the US and Japan might coordinate intervention to support the yen, which has rallied significantly.

What is happening with gold prices?

Gold prices have extended their rally, surpassing $5,000 an ounce and reaching a new record high.

What are investors watching regarding major tech companies?

Investors are closely monitoring comments about AI spending and its potential for monetization from major tech companies reporting earnings.

Home / Business and Economy / Dollar Tumbles on Coordinated Intervention Fears

Dollar Tumbles on Coordinated Intervention Fears

26 Jan

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Summary

Dollar fell for third day, reaching lowest since September against peers.
Yen rallied to its highest level in two months following checks.
Gold topped $5,000 an ounce, extending its record rally.

Dollar Tumbles on Coordinated Intervention Fears

The US dollar continued its sharp decline on Monday, marking its third consecutive day of losses and reaching its lowest value against major currencies since September. This market movement is fueled by speculation that the United States and Japan may coordinate currency intervention to strengthen the yen, which saw a significant rally to a two-month high.

Precious metals also extended their impressive gains, with gold reaching a new record above $5,000 an ounce and silver surging by 6%. This volatility follows indications of coordinated rate checks between Tokyo and Washington, a preliminary step towards direct intervention that could deter speculators.

Market attention is also directed towards the Federal Reserve, with potential candidates for its leadership gaining traction and interest rate cut expectations for 2026 being revised. Investors will be scrutinizing upcoming earnings reports from major technology firms, particularly comments regarding AI spending and its monetization potential.