U.S. dollar gained against group-of-ten currencies as investors exit gold

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The U.S. dollar gained again on Wednesday against all currencies in the group-of-ten, as Asian currencies continue to depreciate in value. According to Bloomberg and TradingView, the greenback was up by the following amounts in trading:

• USDAUD: +0.42%
• USDEUR: +0.17%
• USDGBP: +0.15%
• USDJPY: +0.07%
• USDCHF: +0.12%
• USDCAD: +0.16%
• USDHKD: +0.01%
• USDSEK: -0.04%
• USDNOK: +0.31%

The update comes amid a slump in the price of gold and Asian currencies, as the U.S. dollar is the main currency used for oil imports. U.S. stock indexes reported mostly bullish movements at close of trading on Tuesday (Source: TIKR terminal data)

• S&P 500: +0.78%
• NASDAQ: +1.70%
• Dow Jones: +0.14%
• Russell 2000: +0.50%

When viewed on a sectoral basis, growth-oriented sectors such as technology, biotechnology, and semiconductors posted gains while more defensive sectors such as Real Estate, Health Care, and Utilities took a backseat (Source: TIKR Terminal data). 

• Technology: +2.76%
• Health Care: -1.29%
• Real Estate: -1.98%
• Financials: -0.20%
• Utilities: -1.48%
• Communication Services: -0.70%
• Consumer Discretionary: +0.14%
• Consumer Staples: -1.54%
• Industrials: +1.35%
• Energy: -0.88%
• Materials: +0.34%
• Aerospace & Defense: +1.38%
• Biotechnology: +0.21%
• Medical Devices: -2.49%
• REITs: -1.53%
• Semiconductor: +4.30%
• Software: +0.79%

In the view of the SGFX research desk, the Federal Reserve is more likely to hold current lending rates steady, though this remains subject to macroeconomic developments. Additionally, the desk notes both American and Asian stock indexes have rallied considerably over the past three months, driven in part by sustained investor enthusiasm for the AI sector. Positive movements of the asset class depend on promising developments in the negotiations between U.S. and Iran and continued movement of oil and gas barrels through the Strait of Hormuz.

Oil prices continued to hover around the $70 mark, reflecting pre-war levels and a return to more stable energy prices. 

Summary

The U.S. dollar has recovered from its lows in early 2026 amid a hawkish stance maintained by the Federal Reserve in response to global inflation. In the view of the SGFX research desk, near-term price direction for crude oil may be influenced by developments in U.S.-Iran negotiations and continued passage of oil and gas through the Strait of Hormuz.

Research references

• Bloomberg data
• TIKR Terminal data
• TradingView data
• Stock Market Today: Dow, S&P Live Updates for July 1 - Bloomberg
• Oilprice.com

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