The Bank of Korea said at the meeting that it was time to prepare for a pivot to interest rate cuts after leaving the benchmark interest rate steady at a 15-year high of 3.50% for the 12th straight meeting, as expected.
While flagging the potential for a more diversified currency landscape, UBS highlights the dollar’s deep liquidity, stability, and the stickiness of global currency regimes. Gold is identified as a key diversifier, with central bank buying and other factors expected to drive its price higher.
Oil fell 2% in the previous session after Israel signalled that its response to a rocket strike in Israeli-occupied Golan Heights on Saturday would be calculated to avoid dragging the Middle East into an all-out war.
The world’s biggest cryptocurrency had risen as far as $70,000 on Monday after Republican presidential nominee Trump promised friendlier regulations when speaking at the Bitcoin Conference over the weekend.
European shares opened higher on Tuesday, boosted by gains in technology and oil stocks, while investors held back from placing big bets ahead of the Federal Reserve’s meeting and Euro zone inflation data.
