Commodity-linked currencies slide while safe-haven yen holds steady amid broad USD rally and weak economic signals.
The U.S. dollar extended its rally as risk-off sentiment dominated markets, pressuring commodity and risk-sensitive currencies like the AUD, NZD, and CAD. The greenback’s strength reflects expectations of prolonged Fed hawkishness and fragile equity markets, with traders eyeing potential rate hikes in 2026.
Crude oil futures settled at $70.34, remaining below the 200-day moving average, while gold and silver hit new 2026 lows. U.S. Treasury yields rose, with the 5-year note auctioned at a high yield of 4.20%. Economic data disappointed, including May new home sales at 580K versus 639K expected and a wider Q1 current account deficit of $226.8 billion.
The USD/JPY pair hovered near multi-decade highs, trading above its 100-hour moving average at 161.515 but below the 2024 peak of 161.95. A break above that level would mark the highest since early 1987, signaling further yen weakness.