Dollar Rises on PCE Increase Amid Market Skepticism

The US dollar rose by 2 index points on Wednesday, reaching a high of 4 index points in the BBDXY before settling down. The Fed's favorite inflation metric, PCE, showed an increase to 3.7%, but this didn't prompt a rate hike from the Federal Reserve. In fact, some traders seemed surprised by the decision not to raise rates.

The price of oil saw some weakness due to non-believers in a recent story about tankers leaving the Strait, despite US claims that 15 tankers had departed. The price of gold and silver also fell, with gold down $64 to $4,595 and silver losing 37 cents to $68.24.

Frank, an expert on currencies, emphasized the importance of treating them as a distinct asset class with their own drivers and risks. He noted that investors who assume currency is background noise may be in for a surprise, citing examples from the past few years where certain currencies have gained significantly against the US dollar.