The dollar extended its selloff on Monday as speculation swirled that the US could coordinate intervention with Japanese authorities to support the yen. Gold topped $5,000 an ounce.
The greenback fell for a third day, losing ground against all major peers to hit the lowest since September. The yen rallied to its highest level in two months. US stock futures fluctuated. Precious metals extended their breakneck rally as gold hit a fresh record and silver surged 6%.
The volatility in foreign-exchange markets follows signs that Tokyo and Washington coordinated on rate checks, a step that can be taken to prepare for direct intervention. Joint US-Japan action would give authorities greater power to deter speculators after the yen hit an 18-month low earlier this month.
“The bigger signal is policy coordination,” said Daniel Baeza, senior vice president at Frontclear. “If markets interpret coordination as a willingness to tolerate easier global dollar conditions, especially alongside a dovish Fed reaction function, that could reinforce short-term dollar downside.”
Treasuries rose across the curve as traders added to bets for 2026 interest-rate cuts after BlackRock Inc. executive Rick Rieder’s candidacy to helm the Federal Reserve gained momentum. With an announcement on the next Fed chair possible as soon as this week, rate expectations will be in focus as current Chair Jerome Powell delivers the latest decision on Wednesday.
Earnings will also be in the spotlight as the busiest week of the season gets underway, with four of the Magnificent Seven tech giants due to report. The group has driven market gains for much of the past three years, but that leadership faltered in late 2025 as Wall Street grew skeptical of whether massive AI spending will deliver returns.
“The main focus from investors will likely be comments around AI-capex,” said Stephan Kemper, chief investment strategist at BNP Paribas Wealth Management. “Any sign of a slowdown could be seen as hyperscalers loosing trust in the possibility to monetize those investments in a timely manner.”
In another possible risk for markets, traders are monitoring whether growing opposition to the Department of Homeland Security’s handling of Trump’s immigration crackdown could prompt a partial government shutdown.
Corporate Highlights:
- Ryanair Holdings Plc raised its full-year guidance for passenger growth and fares.
- SoftBank Group Corp. has halted talks about an acquisition of US data center operator Switch Inc., a setback to founder Masayoshi Son’s ambition to roll out Stargate AI infrastructure, according to people familiar with the matter.
- CVC Capital Partners Plc has agreed to buy US credit manager Marathon, the latest example of consolidation among alternative asset managers.
- Merck & Co. is no longer in talks to acquire biotech firm Revolution Medicines Inc. after the two companies couldn’t agree on a price, the Wall Street Journal reported, citing people familiar with the matter.
- Volkswagen AG won’t go ahead with a planned Audi factory in the US unless automotive tariffs are reduced, Chief Executive Officer Oliver Blume told Germany’s Handelsblatt newspaper.
Some of the main moves in markets:
Stocks
- The Stoxx Europe 600 was little changed as of 9:33 a.m. London time
- S&P 500 futures fell 0.1%
- Nasdaq 100 futures fell 0.3%
- Futures on the Dow Jones Industrial Average were little changed
- The MSCI Asia Pacific Index rose 0.5%
- The MSCI Emerging Markets Index rose 0.5%
Currencies
- The Bloomberg Dollar Spot Index fell 0.4%
- The euro rose 0.3% to $1.1862
- The Japanese yen rose 1.4% to 153.56 per dollar
- The offshore yuan was little changed at 6.9514 per dollar
- The British pound rose 0.2% to $1.3669
Cryptocurrencies
- Bitcoin rose 1.3% to $87,644.1
- Ether rose 2.4% to $2,884.56
Bonds
- The yield on 10-year Treasuries declined two basis points to 4.20%
- Germany’s 10-year yield declined two basis points to 2.88%
- Britain’s 10-year yield declined three basis points to 4.48%
Commodities
- Brent crude rose 0.2% to $65.99 a barrel
- Spot gold rose 2.2% to $5,097.51 an ounce
