U.S. Dollar Rebounds Amid Global Market Turbulence

The U.S. dollar recovered in Asian trading on Tuesday after a period of decline, boosted by returning U.S. traders. Despite being battered by recent events, including President Trump's actions against the Federal Reserve, the currency showed a slight improvement. Meanwhile, gold hit a historic high price.

The U.S. dollar made a slight recovery in Asian markets on Tuesday, rebounding from a sell-off spree ahead of U.S. traders' return post-Labor Day. The dollar index rose 0.2% at 97.873, following a dip to its lowest point since late July on Monday.

Analysts from DBS noted continued optimism from capital markets, despite recent controversies surrounding President Trump's actions against the Federal Reserve. The potential threats to the Fed's independence, coupled with fears of unexpected interest rate cuts, have pressured the dollar.

Gold prices surged, reaching a new record at $3,508.50. Concurrently, silver inched 0.2% higher, approaching a 14-year peak. Meanwhile, ongoing concerns over economic policies and market data, including reports on industrial activity and labor, were expected to influence currency trends further.

(With inputs from agencies.)