The U.S. dollar (USD) came under pressure on Tuesday after China intensified its stimulus measures, pushing the yuan to its highest level in 16 months against the dollar. Additionally, the dollar extended its losses on Tuesday following a surprising drop in the U.S. Conference Board's September Consumer Confidence Index. A strong stock market rally also diverted some capital into equities, reducing the demand for liquidity in USD.

The U.S. Conference Board's September Consumer Confidence Index unexpectedly fell by 6.9 points to 98.7, compared to expectations for a rise to 104.

The euro (EUR) saw a moderate increase on Tuesday due to the weaker dollar. Furthermore, hawkish comments from ECB Board Member Muller boosted the EUR, as he indicated that ECB policymakers might not have enough data to make a decision on interest rates in October.

The yen recovered today from a 2.5-week low against the USD on Tuesday. Initially, the yen fell based on dovish comments from BOJ Governor Ueda, who signaled that the BOJ was in no rush to raise interest rates. Additionally, Tuesday's rally in the Nikkei Stock Index to a 3-week high limited the safe-haven demand for the yen.

The weaker USD provided significant support to metal prices. December Silver Futures surged more than 4% in Tuesday's session, with a settlement price of $32.43 per troy ounce on September 24. Meanwhile, November Platinum Futures rose nearly 3% to $992.8 per troy ounce, and December Copper Futures gained over 3% to $4.4915 per pound.

Source: Barchart