Yen Surges and Metals Advance as Dollar Weakens

The Japanese yen made the session's most unusual move on Thursday, September 3, strengthening roughly 2% against the U.S. dollar. For a major sovereign currency, a single-day change of that magnitude is rare. The rally followed growing market expectations that the Bank of Japan may raise interest rates, prompting traders to unwind bets against the currency.

Gold and silver advanced as falling Treasury yields and a softening dollar supported precious metals. Remarks signaling that the Federal Reserve could hold interest rates steady if inflation continues to ease reduced expectations for further near-term policy tightening. That shift helped lift spot gold near $4,473 an ounce as government bond yields declined across maturities.

Crude oil prices traded near six-week highs before finishing mixed, as Brent crude fell 11 cents to $95.52 a barrel while West Texas Intermediate gained 29 cents to $91.30. Energy markets balanced military tensions involving Iran against broader demand signals across major consumer economies.

Across foreign exchange markets, the U.S. dollar index fell roughly 0.7% as other major currencies gained ground. The euro strengthened 0.41% against the dollar, while the British pound strengthened 0.1% after rebounding from a recent three-week low.

Major digital assets saw little movement on the session: Bitcoin -0.4% and Ethereum -0.4%.

In round-the-clock trading following the session close, metals extended their gains. As of 10:10 am New York, silver +4.1% and gold +3.4%.

Looking ahead, the upcoming economic calendar centers on the release of the monthly U.S. employment report. The data will provide fresh readings on hiring and wage trends, shaping expectations for central bank interest rate decisions.