The dollar hit two-week highs on Thursday as fresh volatility gripped stocks and stormed ahead against the pound, which dropped after the Bank of England left UK rates unchanged in a razor-thin vote.
Next up on Thursday is the European Central Bank’s policy meeting, which is also expected to deliver no change in interest rates. The dollar index , which measures the U.S. currency against a basket of six others, was last up 0.15% at 97.82, rising for a second day. The dollar has regained some strength this week and stocks have turned risk-off as financial markets assess U.S. corporate earnings season, now halfway complete.
Gold and silver, which have become more volatile 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% over 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.
