Dollar Surges Amid Market Volatility and Central Bank Decisions

The dollar hit a two-week peak on Thursday as stocks and precious metals experienced fresh volatility. Investors are keenly watching upcoming rate decisions from the European Central Bank (ECB) and the Bank of England (BoE).

The dollar index, which reflects the U.S. currency's value against a basket of others, increased by 0.14% to 97.82, marking a second day of gains. Sim Moh Siong, a currency strategist at OCBC in Singapore, noted that risk aversion is strengthening the dollar.

The swift selloff in gold and silver, along with a downturn in the Nasdaq Composite, underscores market uncertainty. Investors are particularly focused on the ECB's post-policy press conference for future rate guidance as inflation concerns linger in the Eurozone.