U.S. Dollar Surges Amid Market Volatility and Rate Decisions

The U.S. dollar surged to a near two-week high on Thursday as market volatility intensified and the pound fell following a Bank of England decision that maintained UK rates. Investors leaned towards safer assets as financial markets assessed corporate earnings and a series of soft U.S. labor data.

The dollar index, tracking the U.S. currency against six major counterparts, climbed by 0.17% to 97.85, marking its second day of gains and reaching levels not seen since January 23. Commodities like gold and silver experienced sharp selloffs due to speculative activities.

Sterling dropped against both the dollar and euro after the BoE's split decision kept speculation alive for a potential rate cut. Meanwhile, cryptocurrencies like bitcoin and ether continued to decline, reflecting broader financial instability and risk-aversion among investors.