Dollar Slides on Bond Rally, Euro Bounces Back from 17‑Month Low

The U.S. dollar weakened on Friday as investors poured into Treasury bonds, pushing the 10‑year yield higher and lifting the dollar index lower. The dip in the dollar comes as the euro has extended its rebound from a 17‑month trough, trading near 1.07 against the dollar.

In commodities, gold edged up 0.40% to $4,187.20 per ounce, while silver climbed 1.37% to $57.945 per ounce. Crude oil was in the red; WTI fell 0.72% to $97.26 a barrel and Brent slipped 0.59% to $105.29. Base metals also saw gains: copper rose 0.81% to $6,613.30 per tonne and aluminium climbed 0.76% to $3,007.60 per tonne. Natural gas, however, slipped 1.54% to $3.190 per MMBtu.

The combination of a softer dollar and a stronger euro has added to market volatility, as traders weigh the implications of rising U.S. yields and the continued recovery in the eurozone economy.